New to Real Estate · IN · Member since 2020 · 33 posts · 2 votes
Hello Again BP,
It seems like my BP Karma is only one-sided (I always ask for help, but never really give any). I promise once I finally acquire a property and officially start becoming a real estate investor, I will pay it forward!
My latest lead is a co-worker who was in tears because her house is being destroyed by her nephew. She inherited the house and it is owned free and clear. Not to get into too much detail about her and her family - she feels like they are taking advantage of her and also she believes her sisters are not being honest about the situation.
My question is - does the nephew need to move out of the house before she sells or could she sell the house to me and leave the drama of kicking the nephew out my responsibility?
Oh, and there is NO LEASE involved in this situation. She is letting him and his family (wife and kid) live there free and clear.
Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
5y
@Zack Kosenka I love these situations and my best deals have come from off market deals with lots of hair on it. The key is finding a win win solution and treat all parties with respect. If you work your numbers out have a conversation with the nephew and explain that you are buying the house and that its time to move on. I just bought a house where multiple druggies were in the house and reasoned with the owner living there that when ALL parties were out, I would close on the house within 72 hours. I had the house under contract for 9 months and worked through multiple obstacles! We had a dead aunt on the deed. A dead ex wife and the druggie in foreclosure. When it came time to getting the 5 people out we worked out a deal, but I was always in control. I had the seller sign and produce the death certificate. I then fronted him $5000 up front and from the price balance owed from titling. This way he could get a ARBNB for "rental" as he had bad credit and no job. But, within days he had the $80k from his equity and I let the druggie get all his friends out. The key to these deals—and I have done 40 flips—is winning the sellers over and giving them what they want. Namely, solving their problems but while at the same time making your deal a reality! Closed on April 9th for $160k and almost done for $62k in rebab and worth $380,000. I am letting my son buy it for my true cost so its a deal for him but this could NEVER been done on the MLS.
The key to high profit deals are finding off market deals with a ton of issues going on. Simply solve those issues being the nice guy and maintain all control to use kind and proper leverage.
Who is on title? If it is only in her name, she can sell it. Depending on the condition, you may want to offer below market value to deal with damage. Tour the house- she can give them 24 hours' notice and enter-they don't need to be there.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
5y
Talk to a local eviction company/lawyer to make sure evictions are proceeding. If not definitely get them kicked out first. If they are I’d still want them out before owning. You have people who are accustomed to living there for free. You could always try a few thousand for an option to buy within the next 6 months with full authority to evict and find new tenants. If it works out you go ahead, if not you only lost a few thousand.
New to Real Estate · IN · Member since 2020 · 33 posts · 2 votes
5y
@Bill B. what makes this situation tricky (or extremely easy) is that there is no lease or any other written agreement legally binding the nephew to the house. He is basically squatting at a relative's house. But you are right, I should talk to a lawyer.
Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
5y
@Zack Kosenka I love these situations and my best deals have come from off market deals with lots of hair on it. The key is finding a win win solution and treat all parties with respect. If you work your numbers out have a conversation with the nephew and explain that you are buying the house and that its time to move on. I just bought a house where multiple druggies were in the house and reasoned with the owner living there that when ALL parties were out, I would close on the house within 72 hours. I had the house under contract for 9 months and worked through multiple obstacles! We had a dead aunt on the deed. A dead ex wife and the druggie in foreclosure. When it came time to getting the 5 people out we worked out a deal, but I was always in control. I had the seller sign and produce the death certificate. I then fronted him $5000 up front and from the price balance owed from titling. This way he could get a ARBNB for "rental" as he had bad credit and no job. But, within days he had the $80k from his equity and I let the druggie get all his friends out. The key to these deals—and I have done 40 flips—is winning the sellers over and giving them what they want. Namely, solving their problems but while at the same time making your deal a reality! Closed on April 9th for $160k and almost done for $62k in rebab and worth $380,000. I am letting my son buy it for my true cost so its a deal for him but this could NEVER been done on the MLS.
The key to high profit deals are finding off market deals with a ton of issues going on. Simply solve those issues being the nice guy and maintain all control to use kind and proper leverage.