Hey guys! I just purchased my first property in the Birmingham, Al area out of foreclosure at the courthouse steps. It has been an interesting couple of days. Definitely a new experience! My biggest question is what is a good offer to start with on cash for keys? Do you do a percentage of the price or start with a small flat fee? The property I purchased is in amazing shape outside. It was built in 1945 but has been renovated twice. The first time it was renovated was 1999 and again in 2013/2014. I have set a budget of 25,000 including renovation, lawyers fees, and holding expenses. I know that an ejectment can cost as much as $2,500 so is it worth it to go up to that to prevent property damage, removal of appliances, etc.? Also if you have a great lawyer that you want to suggest for ejectments I would love to speak with them. I have already sent notice to vacate(mail and nail).
I have worked as a an REO listing agent in CA and now in HI for many years and have completed many CFK agreements over this time. It is absolutely in your better interest to negotiate one of these, even if you end up spending more than what your eviction cost would be. The opportunity cost of letting them stay is very important to consider. That’s lost rent, potential damage to the property and your time and energy. It’s important to start the dialogue though. Reach out and see if they would be willing to leave for cash. Then ask THEM how much they need and negotiate from there. They may be willing to take less than what your offering.
One follow up: if you would like a basic CFK agreement that we use for our bank clients just PM me and I can send one to you.
Hey Tim. i agree. I am not in a hurry to turn it around and relist with the holidays being near the market has slowed down some. I am hoping giving them some time + a lesser monetary value will help them work with me. I would love to see what you use for the banks you have worked with before. Im sending you a message now with my email!
Just think of the potential costs of a POed tenant. Two x your keys for cash offer.
I started with a somewhat low monetary cash offer with an offer to give them till the end of the year. Which helps us both I'm sure with the holidays near. I tweaked an agreement Tim had sent me to fit my situation. Setting it up so they have to pay a refundable "rent" payment on November 15th and December 15th that hopefully will allow me to do an unlawful detainer if they fail to pay. Sending to their lawyer in the morning. Hopefully we can work it out.
Their lawyer is filling them with ideas that they can reverse it. Apparently he hasn't been around long or he would have stopped it! 😉
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