Real Estate Agent · Pacific Palisades, CA · Member since 2018 · 43 posts · 14 votes
So I have a condo I am considering buying and flipping. I went to inspect it and found a guy living in there. Trash everywhere inside there and I don't think the electricity was on. I started talking to the guy and I asked who he was paying rent to and his story changed 3 times, First the 'owner' who he then said died 2 years ago, then the HoA(condo) and then the property management company which he could not tell me the name of. So I am not sure whether he is a Trespasser(broke in via unlocked window) or Squatter.
What is the best way to proceed if I should buy the property?
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
7y
From what I gather, it probably amounts to the same thing. Either way, you'll have to evict him in all liklihood if you buy the property. In Los Angeles, that's probably a long and expensive process.
Make the seller get rid of the guy or pass on the purchase. Not worth your trouble otherwise.
If he is a squatter and you do buy with him in place immediately change the locks and have a couple of your burley friends move into the unit with him. Once they are established in the unit they can persuade him to leave.
Real Estate Agent · Pacific Palisades, CA · Member since 2018 · 43 posts · 14 votes
7y
Originally posted by @David C.:
make offer subject to the place being vacant prior to close. Or, ask for a discount and you will take care it.
Yea, I am definitely using this as a negotiating tool.
Originally posted by @Thomas S.:
Make the seller get rid of the guy or pass on the purchase. Not worth your trouble otherwise.
If he is a squatter and you do buy with him in place immediately change the locks and have a couple of your burley friends move into the unit with him. Once they are established in the unit they can persuade him to leave.
Can I get a locksmith to come over and change them while he is in there?
As much as it hurts you cannot change locks etc, squatter has same rights as a tenant, you have to file an unlawful detainer, unless he leaves on his own. Maybe he will just leave or maybe you can give him cash to leave. That's the way it works in CA. Checkout the move Pacific Heights, while extreme, that's how things work.
As much as it hurts you cannot change locks etc, squatter has same rights as a tenant, you have to file an unlawful detainer, unless he leaves on his own. Maybe he will just leave or maybe you can give him cash to leave. That's the way it works in CA. Checkout the move Pacific Heights, while extreme, that's how things work.
My understanding is that if he is a Tresspasser (broke in via window and has not gotten utilities in his name) I can get the sheriff to throw him out after a 2 day notice. Not sure how accurate that is, but this guy doesn't have electricity so I doubt utilities are in his name.
California requires a written 3-day notice to the squatter. An unlawful detainer may not be filed until this is done.
If the squatter doesn’t leave in 3 days, file an unlawful detainer with the court. It’s best to seek professional assistance when doing this. There may be free unlawful detainer forms that are provided online by the court website.
Make sure the squatter(s) are served with the appropriate paperwork.
If the squatter does not respond to the suit, you are awarded what is called a default judgment, meaning the property owner may regain possession of the property.
Attend the hearing schedule by the court clerk.
After the squatter has been served with the lawsuit and afforded an opportunity to present his side of the story, a hearing date will be scheduled within 20 days.
At the hearing a judge will listen to both sides argue their case before issuing a judgment. The hearing usually takes no longer than one hour, and sometimes only 10 min. or less.
Give the judgment to the local sheriff. The sheriff for a fee will post a 5 day notice. After that, if the squatters have not left the sheriff will forcibly remove them and change the locks.
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
7y
From what I gather, it probably amounts to the same thing. Either way, you'll have to evict him in all liklihood if you buy the property. In Los Angeles, that's probably a long and expensive process.
Investor · Los Angeles, CA · Member since 2012 · 1k+ posts · 500 votes
7y
Does anyone know who this person is? I'd call the sheriffs and an eviction attorney. You need to find out if he can be classified as a trespasser or if he is considered a tenant by California Law. If he is a tenant you can't just lock him out, you'd need to evict. If you need to evict him, expect to float the the mortgage or not collect rent for Est. 3-4 months ( if things move smoothly and if he doesn't fight the eviction ) and spend about 2-3K in attorney fee's. If he fights it, it it will likely be a much lengthier and expensive process.
Sounds like the exact same procedure used to evict a tenant. Seems this guy took the tenant eviction procedure and substituted the word squatter for tenant.
If there is a squatter in your vacant house and you call the police, they may say they can't determine if squatter is there legally or not in which case you have to go through the legal process. Unless the squatter clearly broke in, cops are not going to get involved.
Real Estate Agent · Pacific Palisades, CA · Member since 2018 · 43 posts · 14 votes
7y
Originally posted by @Brett Goldsmith:
Does anyone know who this person is? I'd call the sheriffs and an eviction attorney. You need to find out if he can be classified as a trespasser or if he is considered a tenant by California Law. If he is a tenant you can't just lock him out, you'd need to evict. If you need to evict him, expect to float the the mortgage or not collect rent for Est. 3-4 months ( if things move smoothly and if he doesn't fight the eviction ) and spend about 2-3K in attorney fee's. If he fights it, it it will likely be a much lengthier and expensive process.
Cash for keys is a nice option.
Yea, If I go ahead with this, I will first try carrot. On the bright side, I am paying all cash so the only expenses will be HoA, property taxes, etc which don't amount to more than $350/mo. Since I am new to RE Investing, part of me wants to actually go through the process and find out how tough/expensive it is so I can better evaluate future deals. Based on the instant reaction I see, people are extremely weary of dealing with these situations and that means I could potentially make more deals work as others will pass these up.