Due to the SREC call Thursday at 9EST I won't be able to make our 9:30EST meeting. It's difficult to catch all the coaching calls, when they get set up so quickly and are subject to changes at nearly the last minute. That being said I ran into a snag this week and I'd like to get some feedback from the group.
In the course of negotiating a stubborn second with Regions Bank, we got bumped up the food chain three times. Yesterday, we got an email that said they noticed my name associated with the Buyer and with the negotiating company. They called it a conflict of interest and closed the case. They want to get the money (we offered them the $3500 allowed by the first lender Wachovia) and go after the deficiency judgment (about $55,000). That's the real issue.
I'm considering letting the girl at the Stewart Title office have a crack at it, on commission. She gets paid when it closes. Of course, there's no conflict in negotiating your own purchase with the bank, but I wonder, since I sign the Option with my name, as manager AND when I negotiate, my name is on each email, how are you all keeping the two entities separate in the lender's minds?
This is the only place this has come up and I'm convinced they were looking for any reason to close the case, since they think there's money in this retired school teacher's future.
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I thought I'd post the comment I sent you in an email so everyone could benefit or pick apart...
I organized my buying company with both my wife and myself as principals. Now my wife signs all the contracts when I'm purchasing and selling a property.
The truth is that only one-time in the Option Contract and one-time in the NOD Purchase Agreement does it require the buyer to sign their name and print the following underneath the signature (Buyer name, managing member of ABC company). However, this one-time might be the deal breaker.
In my situation, my wife has the same last name as me but it's her first name that's important. While my first name is Jordan (kind of different, unusual and sticks out like a sore thumb), her name is Kathy. So, when I sign off my emails or talk on the phone to lenders, I'm always Jordan which never gets confused with Kathy.
Anyway, I'm sure there are many more secure and private ways to go about it. But that's how I do it for now.
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