Broker asking for 10% downpayment

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

1yr ago

Broker asking for 10% downpayment

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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reply by a searcher 1yr ago
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.

reply by a professional 1yr ago
from University of Southern California in North Palm Beach, FL, USA