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

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

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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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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  • Member since 2024 · 16 posts · 8 votes
    2y
    Quote from @David Ramirez:

    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! 





     Let me confirm with my agent. Thanks!

  • Investor · Cherry Hill, NJ · Member since 2017 · 1 post · 1 vote
    2y

    "Big Mistake!" Don't beat yourself up about it. Follow Chris's advice and move on. I'm sure you'll learn from this.

    Good luck!
     

  • Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    2y

    In our area there is a from you can sign called occupancy after closing. It states the amount charged, how long they are there, etc. If they default then you'd evict. In the future be very detailed and don't close until they are out or have a holdback/paperwork

  • Member since 2024 · 16 posts · 8 votes
    2y
    Quote from @Caleb Brown:

    In our area there is a from you can sign called occupancy after closing. It states the amount charged, how long they are there, etc. If they default then you'd evict. In the future be very detailed and don't close until they are out or have a holdback/paperwork


     Thank you Caleb. Ill do some research on that form.

  • Member since 2024 · 16 posts · 8 votes
    2y
    Quote from @Jeff Tucker:

    "Big Mistake!" Don't beat yourself up about it. Follow Chris's advice and move on. I'm sure you'll learn from this.

    Good luck!
     


     Thanks Jeff! I will keep pushing. We are in this for the long run.

  • Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    2y

    Great advice on the "here's what you should have done" but now let's help out on the current situation....

    Are you sure she hasn't moved out? 

    Great first step that you took by offering to help with moving. Maybe offer cash for keys? Sucks, but it's fast and less expensive than getting an eviction started.

    I was in this situation before where a previous owner did NOT have a post close stay in the contract but the extended family decided they weren't moving out. I called the police, they showed up and told me it's considered trespassing. They told me they can arrest them now if I wanted. I told the officers I didn't want to do that and I gave them adequate time to move out. 

    First try offer cash for keys, if you can't get that to work then get the attorney involved.  

  • Member since 2024 · 16 posts · 8 votes
    2y
    Quote from @Luka Milicevic:

    Great advice on the "here's what you should have done" but now let's help out on the current situation....

    Are you sure she hasn't moved out? 

    Great first step that you took by offering to help with moving. Maybe offer cash for keys? Sucks, but it's fast and less expensive than getting an eviction started.

    I was in this situation before where a previous owner did NOT have a post close stay in the contract but the extended family decided they weren't moving out. I called the police, they showed up and told me it's considered trespassing. They told me they can arrest them now if I wanted. I told the officers I didn't want to do that and I gave them adequate time to move out. 

    First try offer cash for keys, if you can't get that to work then get the attorney involved.  


     Having to pay more for what is ours seems unfair.. but its better than the alternative. Thank you for the advice, Luka.

  • Investor · Long Beach, CA · Member since 2016 · 60 posts · 20 votes
    2y

    @Paula Hernandez First of all, Breathe you will get through this!!! Second, do the math and tally costs both monetary and emotional....is it better to get an attorney and go thru eviction process or give her the incentive to get out. Either way, I do encourage getting legal advice. Sometimes I cant believe people can be so....

    Best of luck. I feel for you as I've had my share of harsh lessons. Again breathe,no regrets only lessons. You are on right path and getting sage advice from forum.

  • Member since 2024 · 2 posts · 0 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).

    Hi theresa, are you allowed to do that before buying a property with a tenant living in it, sorry new to the real estate and trying to learn more about it. 
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y
    Quote from @Ernesto Martinez:
    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).

    Hi theresa, are you allowed to do that before buying a property with a tenant living in it, sorry new to the real estate and trying to learn more about it. 

     If it has a tenant in it and you specified in the offer that it had to be vacant upon possession, I wouldn't close until you know it is vacant.  You might be able to state that if closing is delayed because the tenant hasn't moved out, you want $X off the sales price; but I wouldn't close until it is vacant.

  • Member since 2019 · 54 posts · 9 votes
    2y

    Hello Paula Hernandez. You did not mention where this property is? Did you have an Agent? Fire or sue the Agent. Did you have a Lawyer? Get a second opinion and sue the Lawyer. Do you know that Flips take at least six months to fix up and sell and you are lucky to break even if anything delays the process as you have Monthly Costs that eat into any profit. When I think of Flips, I am reminded of my 35 years as a hands on Landlord and my lesson was to, "Work Smarter and Not Harder." Flips? Yuk.

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