Rent back option for wholesaling?

8 Replies

Hi there BP! So I have a foreclosure that goes to auction on the 30th. I have spoke to the homeowner several times and he's willing to do a rent back agreement. Is this something I put in the purchase and sale agreement? And any other information that would help with this type of situation would be greatly appreciated. Thank you!

@Joshua Lee Wegner you can't stop the train if this is slated for sheriff sale...unless there is a redemption opportunity...but you'd need to settle the property owners debt to bring the mortgage current...this doesn't sound like there is any opportunity to acquire this property...it's too late

...the only opportunity with these is to negotiate with the lender...sell it short , maybe...have you spoken to the lender? 

@Brandon Sturgill thank you for your response sir. I have not spoken to anyone but the owner. I was under the Impression that If I found a cash buyer prior to the auction date for the amt of the foreclosure that I could still save this mans home. I knew time was very sensitive but thought that It was possible. with that said, what Is the timeframe on preforeclosed homes?

reality is most of your cash buyers will not want a hold over tenant.

@Brandon Sturgill   and if it goes to foreclosure sale it takes time to get your deed.

I just closed one today ( got paid off) on one I bought in Ohio at court house and it took 2 months just to get the deed and most are not TRUE cash buyers like us.. so folks like that don't need you in the middle of it they will just go to the sale and bid.. ?? at least that's what I am thinking.

How much equity is in it? Ideally, most buyers will want the property vacant at closing. 

If the seller needs some time to move out, you can use something like this:

https://www.car.org/-/media/CAR/Documents/Transact...

I used it when a seller needed the cash from closing to move. So we agreed to hold back 30k in escrow and give 2 weeks time for the seller to move. After that, it's 1k/day rent.

Originally posted by @Jeremy Diaz :
@Jay Hinrichs Buyers and sellers never need a ”real estate professional.” But I get what you’re saying...

 in this instance you have theory and reality..  but your right real estate can be transacted between parties don't need a lawyer or title or escrow company or agents or lenders or anyone but the two parties.. when foreclosure rescue lease back in our state was legal I did a ton of it.. and there simply was no time to involve anyone.. when the seller decided at 10am on Wednesday they needed to take Massive action and their foreclosure was scheduled for the next morning..  its hair on fire... prep a deed  get it signed and notarized have my secretary run it to the recorders.. hire a courier service to hand deliver cashiers check .. talk to customer service and get a date down so we basically knew our title position.. all done in a matter of a few hours..