Investor · Andover, MN · Member since 2014 · 26 posts · 5 votes
Hi all -
I am hoping someone can provide some guidance. I closed on a nearby property November 30th, allowing the previous owner to occupy the property until December 15th as she said she needed the money at closing to put down on a place to rent. It is now the 27th and she still isn't out, providing one excuse after another. Long story short, considering she is not a tenant and we don't have a lease of any kind, is there anything preventing me from getting the sheriff to remove her from the property for trespassing? I have warned her several times that I am going to take legal action.
This is my first deal working with a wholesaler rather than a traditional agent. One important note here is that part of our deal was that the majority of the funds from the sale were put into escrow until she is moved out, so I was hoping that would be enough to incentive for her to move out, but that doesn't appear to be the case.
Investor · New York City, NY · Member since 2015 · 388 posts · 563 votes
9y
@Steve Wald - evict. Assuming you worked with a lawyer on this transaction, and that the money in escrow is to be used in case she doesn't GTFO, start the eviction process and see if your attorney will allow some of the escrow funds to be applied to any costs you incur. When your ne'er do well seller realizes that her money is going up in smoke(in the form of legal fees,) maybe she'll get out sooner than later.
Investor · New York City, NY · Member since 2015 · 388 posts · 563 votes
9y
@Steve Wald - evict. Assuming you worked with a lawyer on this transaction, and that the money in escrow is to be used in case she doesn't GTFO, start the eviction process and see if your attorney will allow some of the escrow funds to be applied to any costs you incur. When your ne'er do well seller realizes that her money is going up in smoke(in the form of legal fees,) maybe she'll get out sooner than later.
Most are unlicensed brokers working as agents without licensing, education, integrity, and oversight. This is the new norm for people wanting to work as agents by skirting laws. For a good indication of typical ethics, etc just read the forum. The word "wholesaler" implies some value. Screwing sellers out of thousands of dollars and acting as an agent by skirting laws has no value. Bill Gulley defines them as a "public nuisance". I generally use terms such as scammer..but I do like his take as well.
Investor · Andover, MN · Member since 2014 · 26 posts · 5 votes
9y
Thank you all for the responses and advice, I really appreciate it.
@John Thedford - My issue here is not with the wholesaler, just so I am clear. As a matter of fact, I think that there are a lot of good wholesalers out there. I don't think it is fair to label them all as bad and without integrity. Many of them are out hitting the streets trying to find motivated sellers, passing discounted properties on to investors. Sure, they are out to make some money too, but much of the time, the transactions complete without issue and everyone is happy - much like a traditional sale. I have worked with plenty of bad licensed realtors, bad contractors, and bad lenders, etc. There are bad and dishonest people in every profession, if those that are licensed for their trade. Perhaps they aren't all going out to get their licenses because of the upfront cost and/or time commitment. Or perhaps they don't want to give much of their earnings to a broker. I know there are many situations where homeowners are ashamed to have realtors see the condition of their property or perhaps they are so far overdue on their taxes, they don't think they have a chance of listing with an agent. I don't know for certain, but again, my post was not about a bad wholesaler, but rather a seller who didn't follow through on the agreement, leaving me in this situation.
Investor · Hamilton, OH · Member since 2016 · 272 posts · 77 votes
9y
It's unfortunate, but you'll have to evict. Read up on your state and local laws and then post a notice on the premises. Also, send one certified. Get the timer started. Of course, you could offer her a 1 month lease in writing and get her to pay your holding costs while she is getting out. Depends on the state/locality and the person as to whether I'd go this route.
I know the title of your post. I post that information regularly to get people to consider all the circumstances. I haven't met one of them yet that brought any deal..but they sure make wild claims as to value. Who holds them accountable? Nobody. What sort of insurance might most of them have for E&O? Most have none. You can feel free to take the info or ignore it but the fact is there are lots of these operators that offer NO value, harm sellers, and know full well they are acting as agents without licensing, insurance, education, etc. Their posts on BP 100% substantiate these facts.
Real Estate Investor · Raleigh, NC · Member since 2012 · 427 posts · 297 votes
9y
@Steve Wald What does the escrow agreement say? I do that with sellers who want to stay for a couple of weeks because "they need the money to move". It has worked for me every time though. Note: These are deals I sign and close on myself, no wholesaler involved, but I doubt that matters. How much is in the escrow?
There is so much sleazy stuff on that forum is it truthfully pathetic. Those that post promoting dishonesty are the very best indicators of THEIR integrity. Nuff said...
@Steve Wald - evict. Assuming you worked with a lawyer on this transaction, and that the money in escrow is to be used in case she doesn't GTFO, start the eviction process and see if your attorney will allow some of the escrow funds to be applied to any costs you incur. When your ne'er do well seller realizes that her money is going up in smoke(in the form of legal fees,) maybe she'll get out sooner than later.
I worked with an attorney on the probate filing as this property was passed down to the current seller from her father, however, I didn't have an attorney represent me in any other portion of the sale. Should I look to bring in an attorney now to assist with the process? Is there anything the title company can do/answer since they have the rest of the proceeds in escrow?
Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
9y
Steve,
Because I am not familiar with the laws of your land, and even if i was informed on how evictions worked there, i would offer the same advice.
BE NICE! Be super cool to the occupant and offer them cash to move on a certain day. tell them that your partner wants you to evict, but you know that will mess them up for getting another place and you dont want to ruin their life. Tell them that you will offer them the money you have for eviction to give them for the keys on a broom clean unit.
I would easily pay up to 500 bucks to have them out in a week. My son actually paid 1k to get a tenant out recently. COMPLETELY worth it!
I am sure some will disagree, but ya never know what happens in court!
I am hoping someone can provide some guidance. I closed on a nearby property November 30th, allowing the previous owner to occupy the property until December 15th as she said she needed the money at closing to put down on a place to rent. It is now the 27th and she still isn't out, providing one excuse after another. Long story short, considering she is not a tenant and we don't have a lease of any kind, is there anything preventing me from getting the sheriff to remove her from the property for trespassing? I have warned her several times that I am going to take legal action.
This is my first deal working with a wholesaler rather than a traditional agent. One important note here is that part of our deal was that the majority of the funds from the sale were put into escrow until she is moved out, so I was hoping that would be enough to incentive for her to move out, but that doesn't appear to be the case.
Any thoughts/advice is welcomed.
Thank you!
As others said you have to evict. I bought a house on MLS a few months back, owners son decide not to move out after closing, we had to file a unlawful detainer. That is the route you have to take. The police will tell you this if you call and try to get them removed. They need to a court order to act.
Contractor · Franklinville, NJ · Member since 2013 · 183 posts · 86 votes
9y
@Steve Wald I would def. get a lawyer asap. Please look up my thread about my squatter. I tried to be optimistic and do everything on my own and it cost me alot of time, money and aggravation.
Cash for keys will work sometimes, but think about this. You offer a person $500 to move out right away. Well, if they stay for another 30 days instead, they saved a months rent somewhere at $800, $900, $1000.
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
9y
"One way or another we get an education."
You never know why and how your holdover seller rationalizes remaining in the property beyond the contractual date.
What I do is attempt an informal conversation that outlines the consequences of remaining, including the embarrassment of being evicted in front of neighbors. Neither of you would want this.
I would then have an eviction attorney serve the proper (3) or (5) day notice or whatever is appropriate, and do so over their letterhead so that she knows you're ready should a cooporerstive move-out not occur.
In future, have a separate and distinct document signed that decreases the seller's cash due to delays at a rapid rate.if the value of rent is $100/day, double or triple the potential damages should your next seller delay.
I figured out some time ago that people are going to do what they want to. However, it doesn't have to be at my expense.
Investor · orlando florida · Member since 2016 · 26 posts · 7 votes
9y
I bought a house similar situation and it was a real bad experience sheriffs could not serve the person because they would never open the door and to not make the story long they ended up staying 6months rent free my rehab to almost 9 months to complete so my best advice is to not to get into houses with people in it.
Realtor · Celebration, FL · Member since 2013 · 109 posts · 34 votes
9y
Get with an eviction attorney to start the process today. Don't wait to start the process. Since this is not a lease, I would use an attorney and not try to do it yourself. If the eviction process is not done right then it could drag on for an unreasonable amount of time.
Usually people will move once they get the pay or quit notice.
Financial Advisor · Duluth, MN · Member since 2012 · 156 posts · 194 votes
9y
If you own the property in a LLC or a corporate entity, you have to hire an attorney in the State of Minnesota. Not sure how you took ownership. That being said, call some friends or other property investors you may know and ask if they know a good attorney.
If this is your first eviction, do not do this on your own. You have to follow an exact sequence of legal steps and if you don't, it will take longer. Even if the person does not have a lease, they have all the rights of a 30 day tenancy.
On the bright side, you will learn a lot and it really isn't a big deal. Just part of the business of landlording.
Great resource for tenants and landlords a like. You may wish to join the Minnesota Housing Association as well or for referrals for attorneys. http://www.mmha.com/
Investor · Andover, MN · Member since 2014 · 26 posts · 5 votes
9y
You guys are the best! Thank you very much for all the advice, I truly appreciate it. I have an attorney engaged as we speak and will formally begin the eviction process very soon.