How to qualify an International Client?
Hello, I have a client who is interested in a forward purchase of an office building. From a sellers perspective, what would help win the deal to give them credibility. I.e. bank statements? A little lost here, thanks!
[{"id": "fehjmks", "text": "If I can add to this, I'm a US investor and am looking to form an LLC. I have a couple Canadian partners interested in partnering to buy an apartment. Is there a guide I can follow, before asking lawyers?", "replies": [], "depth": 1}, {"id": "fehspml", "text": "Bank statements help. But the real answer is: a hard deposit. I wouldn't go into due diligence with a foreign company if I had a qualified local competitor.\n\nIf you are in an area where there's no competition. Don't even bother qualifying. Make the offer and let the seller come back with their qualification questions.\n\nIt's more about who the seller is. And where the site is.\n\n  \n\n\nI have real class A product. If Joe shmo makes an offer, I'm going to play hardball so that I don't waste my time.\n\nI have class c stuff out there, if I had a buyer who was coming up to my price and they wanted 30 days DD: go for it. It's not moving elsewhere in the next 30.", "replies": [{"id": "feht28o", "text": "Deal is forward sale 120m. So are you suggesting 100k down hard, 30 day DD and 5% down on subject removal, and then balance paid upon milestone targets through construction?", "replies": [{"id": "fehx9w7", "text": "A forward sale of that size? 100% something you should leave to legal - they\u2019re going to have something to say about that contract layout - I would never lay it out as a broker, you\u2019re going to have milestones, bonding - but at the end of the day: a new construction like that is going to need someone who can bite at close and is basically a cash out financing alternative.... \n\nI have no idea about their financing, meaning, if i was going to do that, I\u2019m in in contract tomorrow, can give a down payment but can not pay out with milestone payments because no bank will have anything to collateralize against.  - you certainly can not use forward sale money as construction money (the builder would find it hard (but not impossible) to even borrow against), it will have to be paid into escrow.\n\nIf the seller is looking for deposit money to be released. He becomes a JV partner, not a forward sale.... and milestones are irrelevant. \nIf the seller is just looking to sell on completion, just make the offer and see what happens. But don\u2019t offer to release deposit money at any point. Because buyer is taking a risk - honestly would be hard to see a deal like that close. It\u2019s a dream situation for a developer, but it\u2019s a very difficult deal to close. Just make the offer with an long closing time and a deposit hard after DD. Don\u2019t get caught up in the minutia and see what legal has to say about it.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fei0xbd", "text": "I would ask them to provide evidence of their ability to close like any other client. This would include a balance letter, proof of funds, lender letter of intent, and other documents that indicate they have the sources to fund the purchase of your property.", "replies": [], "depth": 1}, {"id": "fei54ms", "text": "It depends. Are they a prince? And if so how much will you need to pay them up front before they enter into the agreement?", "replies": [{"id": "fei664o", "text": "Bud its a great deal, they only want 10k upfront and in return will match seller commission up to 4% payable upon subject removal", "replies": [], "depth": 2}], "depth": 1}, {"id": "ff23frp", "text": "A truly hard deposit would help. \n\nIt would help to know the deal size but you can split the deposit up to have a certain amount truly non-refundable and another portion subject to title/environmental/whatever and if you're really concerned you can even have title pulled beforehand and only give them a short window to review.", "replies": [], "depth": 1}]