Buying house from incarcerated seller
So a lady called me from my DMM letters trying to convince me to buy the vacant house next to her. Apparently, the lady is part of the neighborhood "Busybodies Anonymous" and has the latest scoop on everything! (Ok, actually she is really sweet. We house hacked a duplex on the street and still own it, so I know of her and the house she's talking about.) She doesn't like living next to a vacant house, AND the guy was arrested on some serious drug charges. She wants me to buy and flip it to ward off potential visits from the owners previous clientele.
Anyone have some advice on buying a house from a guy in jail? I'm willing to talk to whoever I need and even go to the jail to meet the guy.
Pros:
It's in a great spot and decent shape externally
It's owned outright
Dude will be in jail awhile and not able to pay taxes or maintain it (motivation)
Cons:
Dude's in jail lol
Potential remediation from drug use/manufacture
What's up Jonathan, I'm not a professional, yet. But i will say this, the dude in jail really doesn't have any other options. He either gets some money for it, or loses it to the county for unpaid taxes. Since he's in jail, don't worry about visits from his former clientele, they will stay far away from there. I also believe you can get a great deal. I would advise against going to the jail yourself. Send a lawyer to talk to him about the property. That way you keep everything legal, and avoid being directly involved with him yourself.
Hope he sells it to you. good luck.
Buying a house from someone who is currently in jail can be a bit tricky, but it's not impossible. Here are some things you can do to protect yourself and make the process as smooth as possible:
1. Get all the details: Before you make any decisions, try to get as much information as possible about the property and the owner's situation. Find out why the owner is in jail, how long they will be there, and what their plans are for the property. You may also want to do a title search to ensure that there are no liens or other issues with the property.
2. Talk to the owner: If you can, try to talk to the owner directly. You may be able to get a better sense of their intentions and motivations, and you can ask any questions you have about the property. If you're not comfortable visiting the jail, you may be able to arrange a phone call or video chat.
3. Consider remediation costs: As you mentioned, there may be costs associated with cleaning up the property if it was used for drug use or manufacturing. You'll want to factor these costs into your budget and make sure that you're getting a good deal even after accounting for these expenses.
4. Consult with a real estate attorney: A real estate attorney can help you navigate the legal complexities of buying a property from someone in jail. They can review contracts and other documents, help you negotiate terms, and ensure that the transaction is legal and binding.
Overall, buying a house from someone in jail can be a good opportunity, but it's important to do your due diligence and protect yourself legally and financially.
Regarding "Dude will be in jail awhile and not able to pay taxes or maintain it (motivation)" I would call that speculation. How do you know how long he will be sentenced? How do you know his (dire) financial condition? As Edward posted, you need to get the (real) details. Get facts, not opinions. Edward's list looks like a good starting point.
I live in the area and am an agent and investor in NWA. I have a resource as a local agent that I can utilize for some basic background information about the owner and market analysis of the home. You can also look on county and state websites for more details, which I'm sure you have done. Take the possible meth exposure and testing seriously as remediation can be very costly and extensive in most cases. I can support you in this space if you want to proceed with the process of obtaining this property for your portfolio. I am also happy to just provide those basic details for you.