My first flip is not going so well. Problems with seller.

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My first flip is not going so well. Problems with seller.

Paula Hernandez
Member since 2024 · 16 posts · 8 votes

Hi everyone! First-time poster long-time reader here.

In short: 

My husband and I finally pulled the trigger on our first Flip investment here in the Tampa area. We made a quick cash offer and gave the owner 30 days to allow her to move out since the deal was done quickly. It has been 35 days now and she still hasn't moved and we are kind of freaking out as time is money and the lady is not very responsive to our calls and text messages. 

We have offered help moving, carrying stuff, and anything to make this process go smoothly but nada. I think we should act now, whatever that means..

What do we do?

Thank you in advance!

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Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
2y

If anyone stays in past closing you hold a LARGE amount of money in escrow and charge 2x market rent. You want to be nice you make that first 30 days reasonable and then double it on day 31. 

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Paula Hernandez

    Get an attorney and file for eviction.

    For future, never close on a property and allow the individual to remain in the property

    I won’t close unless I do an inspection and house is in condition per the offer.

    Sorry to hear about this

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    2y

    If anyone stays in past closing you hold a LARGE amount of money in escrow and charge 2x market rent. You want to be nice you make that first 30 days reasonable and then double it on day 31. 

    10Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y

    You shouldn't have closed until she was out. If she wanted an extra 30 days to move, you should have charged her rent AND kept a large hold back at closing with escalating amounts if she wasn't out in 30 days (ie you get an extra $500 from the hold back for every day after 30 days that she's not out).

    5Reply
  • Nate Mur
    Handyman · MN · Member since 2022 · 23 posts · 6 votes
    2y

    Is the house habitable for rent? If you would have worded in rent would that have made her and her living conditions your responsibility to maintain at her benefit?

    If she hasn't moved by day 35 she won't be ready by day 45. She's going to need a push by either a legal or financial threat.

    Our first flip the seller left a drool covered growling pit bull caged in the kitchen. After 24 hours we told her she needs to get there before animal control takes the dog. Our lesson learned. 

    Welcome to flipping! If you think things are weird now just wait. Best of luck! It will be worth it, this is just one of the many problems you will get to solve. 

    3Reply
  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 680 votes
    2y

    This is a very creative strategy that has worked for me: If nothing works, offer this!!!!  If she moves out quickly, offer her a profit-sharing agreement of 5% or less on top of your goal profit when the property sells. This will give them the illusion that they will benefit from leaving and will cooperate with selling the property. In the end, if you do the math right and you are putting it on top, it would be better than losing time and potential money to interest payments if you have a loan. 

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  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Paula Hernandez:

    Hi everyone! First-time poster long-time reader here.

    In short: 

    My husband and I finally pulled the trigger on our first Flip investment here in the Tampa area. We made a quick cash offer and gave the owner 30 days to allow her to move out since the deal was done quickly. It has been 35 days now and she still hasn't moved and we are kind of freaking out as time is money and the lady is not very responsive to our calls and text messages. 

    We have offered help moving, carrying stuff, and anything to make this process go smoothly but nada. I think we should act now, whatever that means..

    What do we do?

    Thank you in advance!

    Why did you close while they are still there? NEVER! Also, you should have held back 10k, what to do, evict her! Knock on the door, tell her to get out! Lesson learned, never close until vacant 
    Good luck 

    3Reply
  • Paula Hernandez
    OP
    Member since 2024 · 16 posts · 8 votes
    2y
    Quote from @Bob S.:
    Quote from @Paula Hernandez:

    Hi everyone! First-time poster long-time reader here.

    In short: 

    My husband and I finally pulled the trigger on our first Flip investment here in the Tampa area. We made a quick cash offer and gave the owner 30 days to allow her to move out since the deal was done quickly. It has been 35 days now and she still hasn't moved and we are kind of freaking out as time is money and the lady is not very responsive to our calls and text messages. 

    We have offered help moving, carrying stuff, and anything to make this process go smoothly but nada. I think we should act now, whatever that means..

    What do we do?

    Thank you in advance!

    Why did you close while they are still there? NEVER! Also, you should have held back 10k, what to do, evict her! Knock on the door, tell her to get out! Lesson learned, never close until vacant 
    Good luck 


     Lesson learned! 

    Also, I did held back 10k on an escrow account, but as I understand it, it wont come straight back to me? I have to start a legal process to get the money back.

    1Reply
  • Paula Hernandez
    OP
    Member since 2024 · 16 posts · 8 votes
    2y
    Quote from @Jorge Vazquez:

    This is a very creative strategy that has worked for me: If nothing works, offer this!!!!  If she moves out quickly, offer her a profit-sharing agreement of 5% or less on top of your goal profit when the property sells. This will give them the illusion that they will benefit from leaving and will cooperate with selling the property. In the end, if you do the math right and you are putting it on top, it would be better than losing time and potential money to interest payments if you have a loan. 


     Hi Jorge
    Thank you for this tip! We will definitely consider it. 

    1Reply
  • Paula Hernandez
    OP
    Member since 2024 · 16 posts · 8 votes
    2y
    Quote from @Nate Mur:

    Is the house habitable for rent? If you would have worded in rent would that have made her and her living conditions your responsibility to maintain at her benefit?

    If she hasn't moved by day 35 she won't be ready by day 45. She's going to need a push by either a legal or financial threat.

    Our first flip the seller left a drool covered growling pit bull caged in the kitchen. After 24 hours we told her she needs to get there before animal control takes the dog. Our lesson learned. 

    Welcome to flipping! If you think things are weird now just wait. Best of luck! It will be worth it, this is just one of the many problems you will get to solve. 


     It is habitable for rent. This is another great idea that I did not consider. 

    I am very positive it will be all worth it in the end. But this added stress is hitting us HAAAAARD!

    1Reply
  • Paula Hernandez
    OP
    Member since 2024 · 16 posts · 8 votes
    2y
    Quote from @Theresa Harris:

    You shouldn't have closed until she was out. If she wanted an extra 30 days to move, you should have charged her rent AND kept a large hold back at closing with escalating amounts if she wasn't out in 30 days (ie you get an extra $500 from the hold back for every day after 30 days that she's not out).


     Yeah, now it makes sense and would never do so again. Lesson learned.

    0Reply
  • Paula Hernandez
    OP
    Member since 2024 · 16 posts · 8 votes
    2y
    Quote from @Bill B.:

    If anyone stays in past closing you hold a LARGE amount of money in escrow and charge 2x market rent. You want to be nice you make that first 30 days reasonable and then double it on day 31. 


     Do I discount the rent from the escrow automatically?

    0Reply
  • Paula Hernandez
    OP
    Member since 2024 · 16 posts · 8 votes
    2y
    Quote from @Chris Seveney:

    @Paula Hernandez

    Get an attorney and file for eviction.

    For future, never close on a property and allow the individual to remain in the property

    I won’t close unless I do an inspection and house is in condition per the offer.

    Sorry to hear about this


     Yep. Dont think I will ever do so again. Will start looking for an attorney today and get this going. Thank you for the reply!

    0Reply
  • Paula Hernandez
    OP
    Member since 2024 · 16 posts · 8 votes
    2y

    I want to thank everyone for the great replies and the support. We hope we will come out of this OK and with tons of lessons learned.

    2Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Paula Hernandez:
    Quote from @Bob S.:
    Quote from @Paula Hernandez:

    Hi everyone! First-time poster long-time reader here.

    In short: 

    My husband and I finally pulled the trigger on our first Flip investment here in the Tampa area. We made a quick cash offer and gave the owner 30 days to allow her to move out since the deal was done quickly. It has been 35 days now and she still hasn't moved and we are kind of freaking out as time is money and the lady is not very responsive to our calls and text messages. 

    We have offered help moving, carrying stuff, and anything to make this process go smoothly but nada. I think we should act now, whatever that means..

    What do we do?

    Thank you in advance!

    Why did you close while they are still there? NEVER! Also, you should have held back 10k, what to do, evict her! Knock on the door, tell her to get out! Lesson learned, never close until vacant 
    Good luck 


     Lesson learned! 

    Also, I did held back 10k on an escrow account, but as I understand it, it wont come straight back to me? I have to start a legal process to get the money back.


     Sorry but that's another mistake, it should have been worded, not out within say 2 days of closing, the money is sent to me

    Good luck 

    2Reply
  • Paula Hernandez
    OP
    Member since 2024 · 16 posts · 8 votes
    2y
    Quote from @Bob S.:
    Quote from @Paula Hernandez:
    Quote from @Bob S.:
    Quote from @Paula Hernandez:

    Hi everyone! First-time poster long-time reader here.

    In short: 

    My husband and I finally pulled the trigger on our first Flip investment here in the Tampa area. We made a quick cash offer and gave the owner 30 days to allow her to move out since the deal was done quickly. It has been 35 days now and she still hasn't moved and we are kind of freaking out as time is money and the lady is not very responsive to our calls and text messages. 

    We have offered help moving, carrying stuff, and anything to make this process go smoothly but nada. I think we should act now, whatever that means..

    What do we do?

    Thank you in advance!

    Why did you close while they are still there? NEVER! Also, you should have held back 10k, what to do, evict her! Knock on the door, tell her to get out! Lesson learned, never close until vacant 
    Good luck 


     Lesson learned! 

    Also, I did held back 10k on an escrow account, but as I understand it, it wont come straight back to me? I have to start a legal process to get the money back.


     Sorry but that's another mistake, it should have been worded, not out within say 2 days of closing, the money is sent to me

    Good luck 


     Got it! Thank you so much for the input.

    0Reply
  • Quinte S.
    Member since 2019 · 11 posts · 17 votes
    2y

    @Jorge Vazquez

    I would never pay someone to do something they were supposed to do in the first place.

    I would hire an attorney and pursue that avenue, sue for losses if you wish.

    School of hard knocks

    2Reply
  • Paula Hernandez
    OP
    Member since 2024 · 16 posts · 8 votes
    2y
    Quote from @Jorge Vazquez:

    This is a very creative strategy that has worked for me: If nothing works, offer this!!!!  If she moves out quickly, offer her a profit-sharing agreement of 5% or less on top of your goal profit when the property sells. This will give them the illusion that they will benefit from leaving and will cooperate with selling the property. In the end, if you do the math right and you are putting it on top, it would be better than losing time and potential money to interest payments if you have a loan. 


     Hi again Jorge. I see you are local to the Tampa area too. Do you recommend any Real Estate Atty?

    0Reply
  • Paula Hernandez
    OP
    Member since 2024 · 16 posts · 8 votes
    2y
    Quote from @Quinte S.:

    @Jorge Vazquez

    I would never pay someone to do something they were supposed to do in the first place.

    I would hire an attorney and pursue that avenue, sue for losses if you wish.

    School of hard knocks


     Yeah I know.. it doesn't feel right. But at this point have to consider all options.

    0Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    2y

    Who was helping you with this sale? Did you have a real estate agent and did you buy this on the market? Did you use an attorney to close? There a million ways that this should not have closed with the owner still there. Someone or multiple people let you down during this process unless you bought it direct from a wholesaler or seller off-market, then you should have known this would happen.

    You may be able to go direct to the sheriff as this is not an eviction because she is not a tenant and you own the house.

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  • Paula Hernandez
    OP
    Member since 2024 · 16 posts · 8 votes
    2y
    Quote from @Jonathan Greene:

    Who was helping you with this sale? Did you have a real estate agent and did you buy this on the market? Did you use an attorney to close? There a million ways that this should not have closed with the owner still there. Someone or multiple people let you down during this process unless you bought it direct from a wholesaler or seller off-market, then you should have known this would happen.

    You may be able to go direct to the sheriff as this is not an eviction because she is not a tenant and you own the house.


     We have a realtor helping us with this. He has been very hands-on and responsible. He did inform us that the lady needed 30 days to move after closing since we were closing so fast (Cash sale) and we did agree to it. He also added a clause to hold 10k in escrow account giving her 30 days to move out.

    I guess we could have been a bit more aggressive with the contract and included other things mentioned in this post.

    If can I go directly to the sheriff that would be great!

    0Reply
  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 680 votes
    2y
    Inbox me and I will send you one of my lawyers. 

    Quote from @Paula Hernandez:
    Quote from @Jorge Vazquez:

    This is a very creative strategy that has worked for me: If nothing works, offer this!!!!  If she moves out quickly, offer her a profit-sharing agreement of 5% or less on top of your goal profit when the property sells. This will give them the illusion that they will benefit from leaving and will cooperate with selling the property. In the end, if you do the math right and you are putting it on top, it would be better than losing time and potential money to interest payments if you have a loan. 


     Hi again Jorge. I see you are local to the Tampa area too. Do you recommend any Real Estate Atty?


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    0Reply
  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 680 votes
    2y
    Quote from @Quinte S.:

    @Jorge Vazquez

    I would never pay someone to do something they were supposed to do in the first place.

    I would hire an attorney and pursue that avenue, sue for losses if you wish.

    School of hard knocks


    I agree. That's why I said it was a last resort. In the end, you have to weigh your time losses as well.

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    2y
    Quote from @Paula Hernandez:
    Quote from @Jonathan Greene:

    Who was helping you with this sale? Did you have a real estate agent and did you buy this on the market? Did you use an attorney to close? There a million ways that this should not have closed with the owner still there. Someone or multiple people let you down during this process unless you bought it direct from a wholesaler or seller off-market, then you should have known this would happen.

    You may be able to go direct to the sheriff as this is not an eviction because she is not a tenant and you own the house.


     We have a realtor helping us with this. He has been very hands-on and responsible. He did inform us that the lady needed 30 days to move after closing since we were closing so fast (Cash sale) and we did agree to it. He also added a clause to hold 10k in escrow account giving her 30 days to move out.

    I guess we could have been a bit more aggressive with the contract and included other things mentioned in this post.

    If can I go directly to the sheriff that would be great!


    Why did you close before she moved out? You agreed to give her 30 more days after close with a use and occupancy agreement? If so, then you do not need an attorney to evict as they are only a licensee, not a tenant, and can be removed.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Chris Seveney:

    @Paula Hernandez

    Get an attorney and file for eviction.

    For future, never close on a property and allow the individual to remain in the property

    I won’t close unless I do an inspection and house is in condition per the offer.

    Sorry to hear about this


    or if you do withhold a significant sum that they forfeit if they dont move.  that works 99.5% of the time.
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  • David Ramirez
    Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
    2y

    Hey @Paula Hernandez, 

    Did you have a rent back or post-possession agreement signed before closing? 

    If you had it would be beneficial because you can enforce it with an attorney and go for penalties and damages. 

    I will dm you! 




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