Deadbeat Tenant Wholesale Deal Problem

6 Replies

I was given a lead on a wholesale deal, The tenants that are currently in the house haven't paid rent in months and won't answer the owner's phone calls. The owner says he is very motivated in selling and is ready to start eviction but the owner lives in another state. So it's no telling how long it might take to get them out.

I visited the house and the tenant refuses to let me view the inside. so I have no clue of the condition of the inside of the house. I gave the owner an offer based on best case scenario (which is most likely not the case) when it comes to rehab & repairs, and I told him it could easily change after we see the full condition of the inside of the house.

He sounded interested with the number I gave him and said he wanted to pass it by his wife. If he comes back and we agree on a number what do you guys recommend I do as far as contracts.

I have cash buyers I would offer this deal to, and I have done a few wholesale deals in the past with vacant homes, but I have never done any assignments with property with tenants in them, let alone delinquent & uncooperative tenants. I do not have the money to offer cash for keys (unless they where willing to accept maybe $100)

Would it be reasonable to write a contract NOW with a clause stating we can't close until the tenants are out or should I wait to write-up the contract after the tenants have been put out? (considering it might take 30-60 days for the owner to get them out)

any advice or incite would be great thanks.

If the seller accepts your offer and said he will evict the tenants before closing you need to put the full amount in escrow to protect the seller. And be honest with the seller and let them know you are not the buyer you will be wholesaling it.

Joe Gore

Before I gave him an offer I was totally upfront with him and told him I would be assigning the house to someone else, and I told him the offer is still dependant on the inside condition. He seemed cool with both, he seemed very motivated to get rid of his house

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You think I should ask the owner to give me his estimate on how long he thinks the eviction should take and put a deadline on the contract based on that?

or should I just wait til after the eviction is complete?

I don't understand why the seller won't evict until funds are in escrow. They are non-paying tenants.

@Sam Ray III you'd probably have to get a massive discount to wholesale this to another investor. It appears to be a fair amount of drama involved with the belligerent tenants.

If you can't afford to buy the property outright, can you offer to guide the owner through the eviction process as a qualifier to putting it under contract (or put conveyance of a vacant property as a condition of sale)? Sometimes the threat and/or filing of eviction paperwork is enough to get the tenants' attention.

It appears you've got a motivated seller. Good luck and keep us posted.