LP pulled out 3/4 through DD. Do I tell seller now or wait?

Under contract on a deal and the LP pulled out about 3/4 of the way through DD. I think I can get someone else on board but it will take time. The goal is to get a 2 week extension for dd and waive contingencies other than this. Do you recommend I wait until the last minute to tell the broker/seller so they don't have time to go back to other buyers, or tell them what's going on now?

3 Comments
 

Respectfully, the LP is not the sellers problem, it’s your problem. If you still like the deal and you think you can perform with another LP, I would ask for an extension to close, and if needed, put up additional nonrefundable money.

That sucks, but I’m sure you can salvage it. Good luck.

 

Definitely don't wait until the last minute. Ask for the extension now and get it locked up.

Also ask for longer than 2 weeks. That's barely worth the legal fees to get the lawyers to write the extension language. 

Commercial Real Estate Developer
 
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