Broker asking for 10% downpayment

searcher profile

August 19, 2024

by a searcher from The University of Chicago - Booth School of Business in Greenwich, CT, USA

Hi all,

The broker is asking for 10% in order to accept the LOI. We have never seen the financials, taxes or anything else, Just some very high level numbers in the CIM.

Never heard about that before, is that common?

Thank you all

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commentor profile
Reply by a searcher
from The University of Chicago in Nashville, TN, USA
It's a bit more common to ask on smaller deals but you can often tell them no, most will back off after that. You are the one that is taking risk and spending money on due diligence. At a minimum, negotiate a significantly lower amount and make sure that there are extremely limited scenarios that you wouldn't be given your money back.
commentor profile
Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
No
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