Property under contract and tenant won’t allow showing

Wholesaling
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Property under contract and tenant won’t allow showing

Jacob Kline
Rental Property Investor · St Augustine, FL · Member since 2019 · 74 posts · 47 votes

I’ve got a property under contract, it’s a preforeclosure and I’m trying to wholesale it. This will be my first wholesale deal.

The owner lives out of state and his daughter is living in the property (I’m assuming rent free). The owner has put me in contact with his daughter to walkthrough and show it to buyers. I’ve done my walkthrough and had an inspector go to the property as well.

Now it seems that she is playing games with me and not responding to my messages until it’s past the time I asked to bring a buyer. I might add, I have about 6 interested buyers who want to “put in an offer”- so it will be a few showings, or at least until one of the buyers takes it.

In addition, the debt is going up every day due to daily interest- so the longer the tenant is in the property, the more it’s going to cost my buyer. She has showed no signs of getting ready to move out even though I’ve told her she’s got 10-14 days to vacate.

How would you deal with this situation?

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Alex KhanPro Member
Specialist · Southeast Michigan · Member since 2015 · 300 posts · 244 votes
6y

The only option you have is to Partner up with Mister Thedford for a 19.99% hard money loan to whole-tail the property or else you’re committing a felony and going to jail pal. 


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21Reply
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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    @Jacob Kline  Talk to the owner and let them know.  The landlord only has to give notice that they will be entering the property.  Try to schedule the showings at the same time.

    9Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    6y

    Unlicensed brokers playing games are NOT landlords. My sympathies to the seller that has probably been mislead by this "buyer". These game players just keep coming like a Freddy Krueger!

    19Reply
  • Lydia R.
    Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes
    6y

    @Jacob Kline Does the daughter have an actual written lease agreement with the owner? If not I would say she has no legal right to refuse you access. She is basically a guest. She probably has no where to go once the house is sold and thinks that if you dont buy it she can continue living there for free. I would speak with the property owner about whats going on and have him apply pressure to the daughter.

    16Reply
  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    6y

    Tell the owner exactly what you wrote on this forum post. Let them figure it out, which they will if they want to sell that bad. 

    4Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    6y

    If you are not licensed you are committing a felony and brokering without a license. Please provide me all of your information. 

    12Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y

    you do not have any standing to force a tenant with a rental agreement or without to do anything.

    the only one that can do that is the owner.. 

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    17Reply
  • Bill F.
    Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
    6y

    @John Thedford the non so silent sentinel of wholesaling on BP... classic 

    @Lydia R. that's not correct. Whether there is a lease or the they are M2M, the tenant still has a right to privacy. Fla. Stat. Ann. § 83.53 lays out the requirements the landlord needs to adhere to. Since @Jacob Kline isn't her landlord, she has no requirement to deal with him. 

    If I was OP, I'd communicate only with the seller and let him deal with his daughter. What does your purchase contract say vis a via access to the property? 

    To make the deal move along, I'd first try and schedule a time to take detailed pictures of the property which you can show to buyers to get them to possibly put in an offer without visiting in person. 

    I'd also always make sure I 100% had the ability to close so I didn't waste everyone's time and cost the seller more money. 

    11Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    6y
    Originally posted by @Bill F.:

    @John Thedford the non so silent sentinel of wholesaling on BP... classic 

    @Lydia R. that's not correct. Whether there is a lease or the they are M2M, the tenant still has a right to privacy. Fla. Stat. Ann. § 83.53 lays out the requirements the landlord needs to adhere to. Since @Jacob Kline isn't her landlord, she has no requirement to deal with him. 

    If I was OP, I'd communicate only with the seller and let him deal with his daughter. What does your purchase contract say vis a via access to the property? 

    To make the deal move along, I'd first try and schedule a time to take detailed pictures of the property which you can show to buyers to get them to possibly put in an offer without visiting in person. 

    I'd also always make sure I 100% had the ability to close so I didn't waste everyone's time and cost the seller more money. 

    This is excellent advice above, especially the last line. If you can’t close and have no intention to, plus you have publicly marketed the property, you are in violation of FL real estate laws. I suggest you get some legal help and also suggest you deal with the owner of record only. Expecting the owner to have not only you inspect twice but 6 more people is overboard and as a seller, I certainly would not agree to that. Every day that goes by and this seller gets deeper into the loan, You could be held liable for that. So again, get some legal help here as I am not an attorney and this info is not to be construed as legal advice, just a heads up.

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    16Reply
  • Calvin OzanickBusiness Member
    Property Manager · Janesville, WI · Member since 2017 · 708 posts · 297 votes
    6y

    I would just talk it out with the owner. This should not be an issue as she is not truly a tenant it seems. Also, if the owner wants it to sell, he had best get her moving. 

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    2Reply
  • Alex KhanPro Member
    Specialist · Southeast Michigan · Member since 2015 · 300 posts · 244 votes
    6y

    The only option you have is to Partner up with Mister Thedford for a 19.99% hard money loan to whole-tail the property or else you’re committing a felony and going to jail pal. 


    248-979-8119
    21Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    6y
    Originally posted by @Bill F.:

    @John Thedford the non so silent sentinel of wholesaling on BP... classic 

    @Lydia R. that's not correct. Whether there is a lease or the they are M2M, the tenant still has a right to privacy. Fla. Stat. Ann. § 83.53 lays out the requirements the landlord needs to adhere to. Since @Jacob Kline isn't her landlord, she has no requirement to deal with him. 

    If I was OP, I'd communicate only with the seller and let him deal with his daughter. What does your purchase contract say vis a via access to the property? 

    To make the deal move along, I'd first try and schedule a time to take detailed pictures of the property which you can show to buyers to get them to possibly put in an offer without visiting in person. 

    I'd also always make sure I 100% had the ability to close so I didn't waste everyone's time and cost the seller more money. 

    These poor unlicensed brokers are definitely at a disadvantage. Licensees usually don't have these problems. They also operate WITHIN THE LAW. I see more victims in the OP's future...victims of his games. ACTUALLY--=-yes brokering without a license is a 3rd degree felony in FL. If I had my way we would fill the jails with these types!

    3Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    6y
    Originally posted by @Alex Khan:

    The only option you have is to Partner up with Mister Thedford for a 19.99% hard money loan to whole-tail the property or else you’re committing a felony and going to jail pal. 


    LOL...you trying to build my HML business? Actually...those rates are a LITTLE high..but not off by much:)

    2Reply
  • Account Closed
    Member since 2019 · 1k+ posts · 1k+ votes
    6y

    @Jacob Kline

    You’ve gotta learn local legislation. Many jurisdictions treat no written lease as a “verbal lease” that follows standard conditions of the legislative area. Find out required notice and have legal owner give it. Then arrive and enter. Be prepared and learn what then owners rights are when she refuses entry, lets face it you’re not going to push someone aside and enter if they block the doorway. Also learn HER rights, for example, maybe she has the right to stay after ownership switch? She’s likely just worried about a rent increase and /or eviction, if you can put her mind at ease it may go a long way to a better situation.

    1Reply
  • Alex KhanPro Member
    Specialist · Southeast Michigan · Member since 2015 · 300 posts · 244 votes
    6y
    Originally posted by @John Thedford:
    Originally posted by @Alex Khan:

    The only option you have is to Partner up with Mister Thedford for a 19.99% hard money loan to whole-tail the property or else you’re committing a felony and going to jail pal. 


    LOL...you trying to build my HML business? Actually...those rates are a LITTLE high..but not off by much:)

     What’s crazy and news to me is that people will actually pay 12.99% + 

    I have several private investors that are More than happy with 5-7%. 

    After seeing people pay 12%+ I’m tempted to start a Hard Money Business myself lol

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    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y

    I don't think wholesalers realize what "marketing without a license" means. Marketing is any act of sales, advertising or promotion. Showing the property to buyers is marketing. Advertising the property is marketing. E-mailing a buyers list is marketing. Telling anyone you have a property for sale is marketing. It is impossible to sell a property to someone without marketing it.

    There is two options, get a license or buy the property before selling it. 

    The daughter living in the property is a tenant and has tenant rights. You don't need a lease to be a tenant. Only the the owner, her father, can evict her. Maybe his plan is to sell the property with her living there and let someone else be the bad guy. Figure the cost of eviction into your asking price. 

    @Jacob Kline make sure what you are doing here is legal.

    11Reply
  • Account Closed
    Attorney · Skokie, IL · Member since 2016 · 270 posts · 109 votes
    6y

    @Jacob Kline - Sorry you're dealing with such a frustrating situation! @Bill F. is absolutely right, tenants have occupancy rights regardless of whether any written lease exists. As challenging as it may be that the tenant is making it hard for you to show the condo, there is not much of a legal basis that you can use to force her hand. It's a question of duty - if she has no contractual duty to you, there's no way you can make her do anything. She does, however, have a duty to the landlord imposed by any verbal or written lease agreement as well as the Florida Residential Landlord Tenant Act. See what kind of progress you can make with the landlord, and otherwise it might be a good idea to do everything you can to sell it sight unseen until you can resolve this issue. 

    4Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    6y
    Originally posted by @Joe Splitrock:

    I don't think wholesalers realize what "marketing without a license" means. Marketing is any act of sales, advertising or promotion. Showing the property to buyers is marketing. Advertising the property is marketing. E-mailing a buyers list is marketing. Telling anyone you have a property for sale is marketing. It is impossible to sell a property to someone without marketing it.

    There is two options, get a license or buy the property before selling it. 

    The daughter living in the property is a tenant and has tenant rights. You don't need a lease to be a tenant. Only the the owner, her father, can evict her. Maybe his plan is to sell the property with her living there and let someone else be the bad guy. Figure the cost of eviction into your asking price. 

    @Jacob Kline make sure what you are doing here is legal.

    If they are not licensed they are brokering without a license which is a 3rd degree in FL.

    1Reply
  • Jacob Kline
    OP
    Rental Property Investor · St Augustine, FL · Member since 2019 · 74 posts · 47 votes
    6y

    @John Thedford can you show me where in the law it says that assigning equitable interest is illegal in Florida?

    4Reply
  • Jacob Kline
    OP
    Rental Property Investor · St Augustine, FL · Member since 2019 · 74 posts · 47 votes
    6y

    @Ahmed Motiwala thank you!

    0Reply
  • Jacob Kline
    OP
    Rental Property Investor · St Augustine, FL · Member since 2019 · 74 posts · 47 votes
    6y

    @Bill F. Thanks Bill! Really appreciate it

    0Reply
  • Jacob Kline
    OP
    Rental Property Investor · St Augustine, FL · Member since 2019 · 74 posts · 47 votes
    6y

    @Bill F. Also I originally intended to close on it myself for rental, but didnt feel comfortable with the amount of work. So yes I still could close on it worst case then relist it.

    2Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    6y
    Originally posted by @Jacob Kline:

    @John Thedford can you show me where in the law it says that assigning equitable interest is illegal in Florida?

     Marketing properties you do not own, unless licensed, is illegal. See FL statute 475.

    1Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    6y
    Originally posted by @Jacob Kline:

    @John Thedford can you show me where in the law it says that assigning equitable interest is illegal in Florida?

     Read statute 475.43. You are brokering. I have turned in dozens for marketing properties they do not own and many have gotten a cease and desist from the state. 

    0Reply
  • Jacob Kline
    OP
    Rental Property Investor · St Augustine, FL · Member since 2019 · 74 posts · 47 votes
    6y

    @John Thedford so what would be considered marketing? Listing on MLS? For sale sign?

    I’m assigning to one of my buyers who are in my personal network.

    Seems a little thin to be accusing someone of felony and I don’t appreciate it. There are tons of people out there who assigning contracts and not “playing games” by your words. I’d call it solving problems and earning a living.

    If you have actual advice, I’m all ears but otherwise you’re wasting time here.

    12Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    6y
    Originally posted by @Jacob Kline:

    @John Thedford so what would be considered marketing? Listing on MLS? For sale sign?

    I’m assigning to one of my buyers who are in my personal network.

    Seems a little thin to be accusing someone of felony and I don’t appreciate it. There are tons of people out there who assigning contracts and not “playing games” by your words. I’d call it solving problems and earning a living.

    If you have actual advice, I’m all ears but otherwise you’re wasting time here.

     By your own admission you are marketing a property you do not own. You ARE committing a felony. No apology from me stating facts you don't like. "Solving problems" and "earning a living" committing a crime is...ILLEGAL!  Feel entitled and above the law? Typical!!

    If I get enough info to report you I will and you can take it up with the state.

    1Reply
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