Investor/Realtor · Wentzville, MO · Member since 2014 · 846 posts · 431 votes
We recently received a call from our direct mail campaign. Seller is motivated and owns the property free and clear. The property is 3/2 1500sqft. home in a A-B class area built in 1972. The property is worth 170-190k. The owner is already mentioned he would like to get around 100k but we feel we could acquire it for around 90k.
Now here lies the issue. He acquired the property from his brother by quit claim. The problem is the brother's daughter (and immediate family) is living in the house. They were paying rent to their father when he was alive and owned the house but when he passed they stopped paying once the uncle took over. There is no lease agreement, it was verbal. The owner wants nothing to do with evicting the family members.
The owner says he had other investors interested but he has not heard back from them. He went to the house with police to see it and they would not let him in only the police officers. The officers walked through and said it seemed it was in good shape except the dish washer was missing?.?
If we acquire this property, we would have to evict the tenants. Would this be a big issue? The plus side is the property can be acquired for a great price with a ton of room to profit.
Chicago, IL · Member since 2014 · 15 posts · 4 votes
11y
What I would do is sit down with the tenants and explain to them in a very polite way that you will be buying the home and once that happens there are two options they will have. The first option is I will give you X days to move out and X amount of cash to take with you. The second option would be for me to take you to court, have the sheriff evict you and you and I would not want that because court fees are going to cost more than it would to simply move out and in the end the you guys don't have a lease agreement that would help your case.. so take this cash and I'll give you X amount of days to move out. Be firm and polite And actually follow through if they choose the second option.
We are still learning as we go. We have been involved with real estate investing for 8 months now and we learn something new everyday. The best lessons learned are from mistakes made while taking action. The person called us from our direct mail campaign. He had a quick claim dead and all and we took action and got it under contract. Lesson learned! Do some research first and save yourself some time! Sometimes when you take action, you don't know exactly what is the next step. But committing is the first step to success.
On a positive note, we found buyers for 2 properties we have under contract today. Not a bad days work!