Property under contract and tenant won’t allow showing
Rental Property Investor · St Augustine, FL · Member since 2019 · 74 posts · 47 votes
Property under contract and tenant won’t allow showing
Most Popular Reply
Alex KhanPro Member
Specialist · Southeast Michigan · Member since 2015 · 300 posts · 244 votesThe 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.
134 Replies
- Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes6y
@Joel S. I no longer live in bethal but I’ve sure hunted a lot of ptarmigan there. Caribou n moose too. I now live in Colorado. The way you finance a property, the purchase price, and many other factors enter in the desirability of a property. I’m different. I do not and will not buy from a wholesaler. He’s not paying his dues. Many (not all) operate in the shadows, mislead sellers, and get mad when things don’t go their way. It has no place in our industry. You wanna sell realestate? Get the license. Pay the errors and omissions. Make it so I as a buyer or seller can trust what you tell me. I wonder how many people that buy from a wholesaler sell with the same wholesaler? I wonder if they realize they are only getting 1/2 the deals?? RR
- Member since 2018 · 433 posts · 208 votes6y
Originally posted by @George Munoz:
@John Thedford Why are you threatening @Jacob Kline? If he has a legal binding contract to purchase with the seller and known buying partners that he can choose what's the problem? He is not doing anything wrong, You don't need a license to wholesale in Florida. ( Obviously, there are rules and proper way to do it) . though I don't see the need for threating. Jacob is trying to do the best he can and asking for advice, ( and trying to make it, like anybody here in this platform at some point) .
As far as your question @Jacob Kline Be honest with Seller, I will suggest not to demand her to vacate the property, because you don't have any legal rights to do that ( just after closing) ( Or if your buyers really trust you and you have a good amount of pictures showing all repairs try to see if they might buy sight unseen. Or send cancelation and move on to the next one. cos every time you spend focusing on this one, you are missing other opportunities.
I think the idea that he has no legal rights to demand the tenant be removed is contrary to the idea that he's selling his own property...
I can absolutely demand a tenant be removed prior to closing. I seemed to have missed the comment where he said he can close because he was originally buying for himself. You're right that he doesn't need a license to wholesale. He should close, then he's free to market all he wants. And he's free to make demands of the tenant to allow him to show it.
what is your position on where it crosses a line into marketing if you don't think showing 6 buyers the property crossed it?
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes6y
Originally posted by @Garrett Wilson:
@John Thedford There is no need to threaten and abuse the OP. He clearly stated it was the first time he was attempting to wholesale and he is obviously here to get educated (as that is why people use BiggerPockets). You took many assumptions to think that he was "playing games" and felt entitlement to be "above the law" when he may just not be as familiar with the law as you are. If that is the case, take the time to educate him in a respectful way so that he can avoid breaking any laws and take the correct approach in the future. Your immature attitude throughout your posts are discouraging to people who want to ask questions on the BP forum because they will be in fear that abusive users like you will provide threats instead of advice.
Signing contracts with no intention or ability to close is playing games. Bringing through six buyers and skirting laws is playing games. The sad fact is these games result in VICTIMS. I have yet to see one of these types that would be ok if the same garbage was pulled on their loved ones.
- Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes6y
@Jacob Kline , simple, any experienced investor knows ( well should know ) you put an offer in assuming it needs everything . Kitchen baths, heating , all cosmetic , I have purchased many props without going in. Once sold, through her *** out,
Good Luck
- Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes6y
@Dan Heuschele. Your words were l believe, etc. again I say this is not about what you believe. You just said the op has no contract no ownership. It’s not the same thing as what you can and can’t do with a lease. He has no right to disturb her in anyway shape or form until he owns the property. He’s out of line. I bet she could get a restraining order if she chose to do so. RR
- 6yAlex KhanPro MemberSpecialist · Southeast Michigan · Member since 2015 · 300 posts · 244 votes
Originally posted by @Jay Hinrichs:
Originally posted by @Alex Khan:
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 lol5 to 7 % are bank rates if you can cobble a maybe 5 million together at those rates you will make far more as a HML than trying to be a buy and hold drip investor. remember the 12% is just the rate you add points and most of us make 15 to 20% apr not 12.. you borrow at 5 and make the delta.. you have a golden goose and probably don't know it..
now if these are small mom and pops with just 50k and the grand total is 200 to 300k available to you.. then no that wont cut it.. but 5 million that's a nice start to the HML gig..
I’m very interested and have the investors to back it. I wouldn’t feel comfortable starting this business without understanding the ins and outs, the legalities and what’s required from me to really protect myself, my investors and at the bare minimum the initial funds we were to try this business out with.
It’s just a few members of the community some family friends, and a couple of investors I’ve met on here.
They are all pretty big fish and have exceptional medical and physical therapy practices. (At least the ones I have worked with and plan on working with)They want to do something in real estate but are overwhelmed with their own businesses and lives so we started with doing some whole-tail deals for 15-20% of the net proceeds and it was great to be able to close on everything do the clean outs and paint at the most and put them right back up then I transitioned to doing the best whole-tail ones myself.
They keep calling and offer every time I see or talk to them I’m just not Comfortable moving forward without the certainty.
When it’s your money you can do what you want to do with it and make ballsy moves that some people will never approve of or do in a million years and still come out on top with monies made.When it’s others money We have to think twice or three times before we invest it or lend it out to someone that is supposed to make the investment work.
- 6yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Alex Khan:
Originally posted by @Jay Hinrichs:
Originally posted by @Alex Khan:
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 lol5 to 7 % are bank rates if you can cobble a maybe 5 million together at those rates you will make far more as a HML than trying to be a buy and hold drip investor. remember the 12% is just the rate you add points and most of us make 15 to 20% apr not 12.. you borrow at 5 and make the delta.. you have a golden goose and probably don't know it..
now if these are small mom and pops with just 50k and the grand total is 200 to 300k available to you.. then no that wont cut it.. but 5 million that's a nice start to the HML gig..
I’m very interested and have the investors to back it. I wouldn’t feel comfortable starting this business without understanding the ins and outs, the legalities and what’s required from me to really protect myself, my investors and at the bare minimum the initial funds we were to try this business out with.
It’s just a few members of the community some family friends, and a couple of investors I’ve met on here.
They are all pretty big fish and have exceptional medical and physical therapy practices. (At least the ones I have worked with and plan on working with)They want to do something in real estate but are overwhelmed with their own businesses and lives so we started with doing some whole-tail deals for 15-20% of the net proceeds and it was great to be able to close on everything do the clean outs and paint at the most and put them right back up then I transitioned to doing the best whole-tail ones myself.
They keep calling and offer every time I see or talk to them I’m just not Comfortable moving forward without the certainty.
When it’s your money you can do what you want to do with it and make ballsy moves that some people will never approve of or do in a million years and still come out on top with monies made.When it’s others money We have to think twice or three times before we invest it or lend it out to someone that is supposed to make the investment work.
Well keep in mind any lending organization of any scale is not loaning their own cash.. banks loan depositors cash not the employees cash. Crowdfunders have investors.. most HML of any size have a combination along with large bank lines of credit.. That's what I had in the day 20 million of bank LOC's.
- Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes6y
@Jacob Kline What are you talking about paying interest daily? How are you paying interest and why can't you just get all the buyers one date and time? If they can't make if happen then thats their fault and if its a deal you don't need six buyers. Make sure the owner gets his daughter to vacate or cooperate with showings but you have no right. You can't force her to do anything until you are owner so if you want her to cooperate its time to show your sales skills and build rapport with a tenant. If you can't
do that and you can't get seller to cooperate you likely don't have a deal because if seller not willing to help his lack of motivation to sell probably reflected in the price.
- Real Estate Agent · Fort Lauderdale, FL · Member since 2018 · 360 posts · 213 votes6y
@Shane H. I do Agree with with everyone that he should not be demanding anything if he doesn't own the prop. I dont agree fully that he HAS to necessarily close on the property to show the property to a few designated Investors if he already has an understanding from the get go with the seller. Because if he has a Purchase contract signed with his signature and seller signature, plus the understanding of what he is going to do, THis transaction is from seller to buyer, Now legally he has the option to pass over the rights of the contract to someone else. The legal term for the type of situation in place on contract will be DEFACTO CONTRACT. " A de facto contract is legally binding provided the contract does not violate public policy. According to USlegal.com definition . De Facto is a latin word means in Fact or in reality , And the reality of a proper wholesale transaction is ( if is done proper ) You enter into a legal biding agreement with seller and then decide to either assign the RE contract agreement, pass it over to some one else, cousin, partner friend, another entity (which is perfectly legal) or close on the property and resale ( Double close) .
We are not talking here of illegally posting on mls and showing to everyone. ( you have a pipeline of trusted investors, ready to partner up with you and you take the pictures as a buyer, inspect the property with the intent of closing and within your pipeline of investor if have some interest , obviously they will like to go and see , and if is cool with seller , then cool, and if wholesaler cant close or buyer backs out then he forfeit his good faith deposit assuming the risk and responsibility.
Im just saying not be to harsh, obviously we all agree that he made that mistake on demanding with no legal rights
( but we know because we have the knowledge and he is asking for advise)
and we are all assuming that he was illegally marketing the property . In this platforms we all want to succeed in RE and do it well. Ultimately that was my point. We could have address the mistake with a different approach and en-light with knowledge and care. - Real Estate Agent · Fort Lauderdale, FL · Member since 2018 · 360 posts · 213 votes6y
Originally posted by @John Thedford:
Originally posted by @George Munoz:
@John Thedford Why are you threatening @Jacob Kline? If he has a legal binding contract to purchase with the seller and known buying partners that he can choose what's the problem? He is not doing anything wrong, You don't need a license to wholesale in Florida. ( Obviously, there are rules and proper way to do it) . though I don't see the need for threating. Jacob is trying to do the best he can and asking for advice, ( and trying to make it, like anybody here in this platform at some point) .
As far as your question @Jacob Kline Be honest with Seller, I will suggest not to demand her to vacate the property, because you don't have any legal rights to do that ( just after closing) ( Or if your buyers really trust you and you have a good amount of pictures showing all repairs try to see if they might buy sight unseen. Or send cancelation and move on to the next one. cos every time you spend focusing on this one, you are missing other opportunities.
Apparently you don't know the laws regardless of your licensing. He is brokering without a license. The fact I turn them in is not a threat.
Do you know he has no license? maybe he got his license a week ago , we dont know! I am not contradicting that some of his approach was wrong I am saying we should have address this situation by moving him into the right direction instead of throwing stone right away.
And also dont want to discourage you or bring you down , I understand and can see you are very passionate about our industry and its codes and certainly we need more people like you with love and care for the RE community, though we all started somewhere, "we can not force an infant to run if he is asking how to walk" ...
- Real Estate Agent · Fort Lauderdale, FL · Member since 2018 · 360 posts · 213 votes6y
Originally posted by @Shane H.:
Originally posted by @Jay Hinrichs:
Originally posted by @Shane H.:
We are going to end up with a limit on how many properties we can sell in a year just like cars. This is how it happens.
that's what Illinois did.. I think they said you can do ONE.. but double check if your in that state.
Thankfully not.
The story if how I never got started wholesaling contracts. I went to a free seminar. Heard about this great way to make money in real estate with none of my own money. Now I've been in business myself for some time. I make okay money, but starting with nothing I lack the speed I desire. I invest more to make more every year. I thought this was a great way to boost that for a year or two. I have a business attorney who handles my contacts and deed work. I asked him to review the contracts I would use to do that. He flat out told me it's not legal. He said some interpret it differently, but there is no legal way for the end buyer to pay me unless I've already transferred into my name. I asked about double closing. He said maybe, but that runs very close to selling real estate without a license and he was unwilling to review the contracts. I don't use contracts that I don't have reviewed by an attorney. The idea of forming and selling an LLC came up, I forget the exact reason he didn't like that, but that was the closest to making it legal in his opinion. At the end of the day he told me if that's what I want to do go get a license, Or wholesale the right way by buying the propeety. Then selling it.
Man I dont know about that , Here in Florida are plenty of board certify attorneys with the understanding of the wholesaling process and some with their own title company , they wont be risking their license Just like that, please I know that in the FREC (Florida Real Estate Commission) within board members They also have their understanding of proper way of doing it.
The fact that sadly 80% wholesalers are doing it wrong that doesn't mean is illegal . Also Wholesaling doesn't mean the end buyer is going to get a quitclaim deed title full of liens and other issues, Attorneys can proceed normally and defend you if something pops as an issue in title or lien search. I heard more sad stories from the bank auction than wholesalers and people still buy in the bank because is the bank.
I Guarantee Thousands here in this platform have benefited from wholesaling transaction (SELLERS AND BUYERS) , whether we like it or not is the yin yan of the RE market. SO hard to get good profitable margins on MLS and seller always want a million dollars for its property and the buyer for 0 . Proper Wholesaling is the medium.
- Real Estate Agent · Denver, CO · Member since 2016 · 97 posts · 76 votes6y
Originally posted by @Shane H.:
I think the idea that he has no legal rights to demand the tenant be removed is contrary to the idea that he's selling his own property...
I can absolutely demand a tenant be removed prior to closing. I seemed to have missed the comment where he said he can close because he was originally buying for himself. You're right that he doesn't need a license to wholesale. He should close, then he's free to market all he wants. And he's free to make demands of the tenant to allow him to show it.
He can make all the demands he wants to the owner of the property regarding his tenants, but until he owns it himself he cannot give a tenant '10-14' days to vacate. He has no relationship with and no written or oral lease with this woman. All he has is a contract to purchase the property as some point in the future from the owner, who also happens to be the landlord. He is free to make his purchase contingent upon the house being vacant at closing, but there is no scenario where this woman would be subject to eviction by someone who doesn't own the property, have the rights to lease the property out, or has ever had any sort of agreement with her.
Think about if we were to look at it from a different point of view. Does this guy have any obligations to the tenant during the contract period? If the furnace explodes and injures the tenant, is the prospective buyer liable for those damages? No - that problem lies with the owner/landlord/person in charge of the property. You say he's selling his own property, but it's not his property unless he actually closes on it. - Rental Property Investor · Houston TX / Tacoma WA. · Member since 2019 · 166 posts · 89 votes6y
@Jacob Kline
Do a video walkthrough and show it to potential buyers, explain the situation to them and if it's a good deal they will be okay putting an offer in and buying the place as is.
Make sure to check with a local RE lawyer about entering the property with a 24-48 hours notice, on some states it most be mentioned on the lease, I assume there is no lease, so it may be trespassing, also if you are able to legally go in to the property when the tenant is not present make sure to have a video camera rolling all the time so she doesn't claim something went missing.
- Rental Property Investor · Houston TX / Tacoma WA. · Member since 2019 · 166 posts · 89 votes6y
@Lydia T.
A guest is someone that is staying in your place for a short period of time less than a month or 7 days in some states, if she has access to mail, doesn't have another permanent house or any other thing that indicates she lives there, it makes her a tenant and automatically gets all tenant protection laws, she can refuse to leave and then he will need to evict her like any other tenant, she can refuse access to the unit legally unless she signed a lease indicating that the owner or someone he sent can get access to the unit in a 24 hour notice.
BTW also an Airbnb guest that stays longer then a month can be considered a tenant and my claim in some cases all tenant rights, that is why Airbnb recommends that a host should have the guest sign a lease with the long term guest.
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes6y
Originally posted by @George Munoz:
Originally posted by @Shane H.:
Originally posted by @Jay Hinrichs:
Originally posted by @Shane H.:
We are going to end up with a limit on how many properties we can sell in a year just like cars. This is how it happens.
that's what Illinois did.. I think they said you can do ONE.. but double check if your in that state.
Thankfully not.
The story if how I never got started wholesaling contracts. I went to a free seminar. Heard about this great way to make money in real estate with none of my own money. Now I've been in business myself for some time. I make okay money, but starting with nothing I lack the speed I desire. I invest more to make more every year. I thought this was a great way to boost that for a year or two. I have a business attorney who handles my contacts and deed work. I asked him to review the contracts I would use to do that. He flat out told me it's not legal. He said some interpret it differently, but there is no legal way for the end buyer to pay me unless I've already transferred into my name. I asked about double closing. He said maybe, but that runs very close to selling real estate without a license and he was unwilling to review the contracts. I don't use contracts that I don't have reviewed by an attorney. The idea of forming and selling an LLC came up, I forget the exact reason he didn't like that, but that was the closest to making it legal in his opinion. At the end of the day he told me if that's what I want to do go get a license, Or wholesale the right way by buying the propeety. Then selling it.
Man I dont know about that , Here in Florida are plenty of board certify attorneys with the understanding of the wholesaling process and some with their own title company , they wont be risking their license Just like that, please I know that in the FREC (Florida Real Estate Commission) within board members They also have their understanding of proper way of doing it.
The fact that sadly 80% wholesalers are doing it wrong that doesn't mean is illegal . Also Wholesaling doesn't mean the end buyer is going to get a quitclaim deed title full of liens and other issues, Attorneys can proceed normally and defend you if something pops as an issue in title or lien search. I heard more sad stories from the bank auction than wholesalers and people still buy in the bank because is the bank.
I Guarantee Thousands here in this platform have benefited from wholesaling transaction (SELLERS AND BUYERS) , whether we like it or not is the yin yan of the RE market. SO hard to get good profitable margins on MLS and seller always want a million dollars for its property and the buyer for 0 . Proper Wholesaling is the medium.
There are two legal ways to wholesale: be licensed or buy then resell. State of FL investigators state bringing an end buyer is brokering. The assignment clause was never intended to be used to circumvent licensing laws. I use it all the time and then determine in what name I am going to take ownership. The bigger issue is the victimization of the unsuspecting public.
- Member since 2018 · 433 posts · 208 votes6y
Originally posted by @Clayton Boyle:
Originally posted by @Shane H.:
I think the idea that he has no legal rights to demand the tenant be removed is contrary to the idea that he's selling his own property...
I can absolutely demand a tenant be removed prior to closing. I seemed to have missed the comment where he said he can close because he was originally buying for himself. You're right that he doesn't need a license to wholesale. He should close, then he's free to market all he wants. And he's free to make demands of the tenant to allow him to show it.
He can make all the demands he wants to the owner of the property regarding his tenants, but until he owns it himself I can't imagine he can give a tenant '10-14' days to vacate. He has no relationship with and no written or oral lease with this woman. All he has is a contract to purchase the property as some point in the future from the owner, who also happens to be the landlord. He is free to make his purchase contingent upon the house being vacant at closing, but I don't see any scenario where this woman would be subject to eviction by someone who doesn't own the property, have the rights to lease the property out, or has ever had any sort of agreement with her.
Think about if we were to look at it from a different point of view. Does this guy have any obligations to the tenant during the contract period? If the furnace explodes and injures the tenant, is the prospective buyer liable for those damages? No - that problem lies with the owner/landlord/person in charge of the property. You say he's selling his own property, but it's not his property unless he actually closes on it.Maybe I worded that poorly... The point I was stressing is that it's not a legal wholesale deal, and that is evident by this scenario. In a legitimate deal I would demand a problem tenant be removed before closing. Then when I closed I would be free to market to end buyers and parade them through as I please. Honestly I think the daughter has a suspicion something isn't right and is trying to protect her dad.
- Member since 2018 · 433 posts · 208 votes6y
Originally posted by @George Munoz:
Originally posted by @Shane H.:
Originally posted by @Jay Hinrichs:
Originally posted by @Shane H.:
We are going to end up with a limit on how many properties we can sell in a year just like cars. This is how it happens.
that's what Illinois did.. I think they said you can do ONE.. but double check if your in that state.
Thankfully not.
The story if how I never got started wholesaling contracts. I went to a free seminar. Heard about this great way to make money in real estate with none of my own money. Now I've been in business myself for some time. I make okay money, but starting with nothing I lack the speed I desire. I invest more to make more every year. I thought this was a great way to boost that for a year or two. I have a business attorney who handles my contacts and deed work. I asked him to review the contracts I would use to do that. He flat out told me it's not legal. He said some interpret it differently, but there is no legal way for the end buyer to pay me unless I've already transferred into my name. I asked about double closing. He said maybe, but that runs very close to selling real estate without a license and he was unwilling to review the contracts. I don't use contracts that I don't have reviewed by an attorney. The idea of forming and selling an LLC came up, I forget the exact reason he didn't like that, but that was the closest to making it legal in his opinion. At the end of the day he told me if that's what I want to do go get a license, Or wholesale the right way by buying the propeety. Then selling it.
Man I dont know about that , Here in Florida are plenty of board certify attorneys with the understanding of the wholesaling process and some with their own title company , they wont be risking their license Just like that, please I know that in the FREC (Florida Real Estate Commission) within board members They also have their understanding of proper way of doing it.
The fact that sadly 80% wholesalers are doing it wrong that doesn't mean is illegal . Also Wholesaling doesn't mean the end buyer is going to get a quitclaim deed title full of liens and other issues, Attorneys can proceed normally and defend you if something pops as an issue in title or lien search. I heard more sad stories from the bank auction than wholesalers and people still buy in the bank because is the bank.
I Guarantee Thousands here in this platform have benefited from wholesaling transaction (SELLERS AND BUYERS) , whether we like it or not is the yin yan of the RE market. SO hard to get good profitable margins on MLS and seller always want a million dollars for its property and the buyer for 0 . Proper Wholesaling is the medium.
When my attorney won't handle title, and the only agency that will in my area is shady with 1 star reviews for screwing up their titles I'm wary.
I agree there is a proper way to do it. Close before marketing. Wholesaling is going to lead to an end of the flipping business. We are watching it happen. That's why most states wrote used car laws the way they have. You think they aren't going to do the same with real estate? I think they will. They didn't have to worry about flippers because it was out of the league of the little guys so not a big deal. Flipping contracts has made it attainable, albeit with one foot out if bounds. My attorney gave me a compelling explanation if it all. Buye. Close. Market. That's wholesaling.
- Rental Property Investor · Lexington, KY · Member since 2019 · 15 posts · 2 votes6y
@Jacob Kline I haven’t done this. Only experienced it. I just bought my first rental through a wholesaler. They basically got all their potential buyers to come by for 1 showing, 1 time. I don’t know if having less showings would make her more amiable to the process.
- Member since 2018 · 433 posts · 208 votes6y
Someone above made a great point. Call the state and ask. If you're afraid to do so, it's because you already know it isn't legal. People laughed at me at an REI meeting when I said I ran it buy my attorney. The laughed at me for asking my attorney... Who is using contracts in their business without consulting an attorney? Not reputable businessmen.
- Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes6y
@Jacob Kline
Marketing Properties for sale that one does not own is a violation of state law in all 50 states for the most part, not just Florida. What a wholesaler who is doing things correctly owns is a contract to purchase real estate and is selling that contract. If you don't know this as a wholesaler, then get some training please.
Marketing and selling property occupied by anyone other than the tenant is tough. As person who does wholesale from time to time and who is also a licensed Realtor, those occupied properties at our office either get purchased out right, so then I am the owner and the tenant has legal obligation to me ( usually in situations where seller can prove the tenant is a good paying tenant), we list the property as a realtor and take a ton of photos, get all the income and expenses and market 100 percent on paperwork and photos, no unit walk through until we have a purchase agreement so we don't hassle the tenant. Or we wait till the tenant is gone so we can get inside.
And above all folks, be honest with your tenant if a property is for sale, let them know what is going on and what's going to happen. I have had tenants help us as much as possible find a new owner of a property in hopes that the new owner would take better care of the property. In other cases, we have made arrangements with the non paying tenant to pay them to move out, when there is something in it for the tenant to compensate for the minumum hassle, they are much more willing to help.
- Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes6y
@Jacob Kline
The assignment transaction is not he illegal part. In most states, it's in the marketing a property you don't own. So don't market what you don't own, market your contract. If it's a really great deal on pape, assign that paper, get paid for that paper and let the end buyer work it out.
But it sounds like it's not quite the deal you thought as you don't want to close on it?
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes6y
Originally posted by @Kim Tucker:
@Jacob Kline
The assignment transaction is not he illegal part. In most states, it's in the marketing a property you don't own. So don't market what you don't own, market your contract. If it's a really great deal on pape, assign that paper, get paid for that paper and let the end buyer work it out.
But it sounds like it's not quite the deal you thought as you don't want to close on it?
It might also be the case where the seller has been misled and this "buyer" walks away leaving the seller screwed and victimized. If so this "buyer" should be sued for fraud IMO.
- Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes6y
It appears that in addition to unlicensed brokering issues here, we also have some unlicensed real estate attorneys here too!
Either people are not reading this entire thread, they are too stubborn, or something even worse.
For the record, a wholesaler with a contract to purchase a property that is currently occupied by anyone, does not have the right to evict or demand they leave, all they can do, via their contract, is have the contractual right to enter the premiss for inspections and contractually obligate the seller to deliver possession at COE (close of escrow). Only the homeowner has the legal right to evict or have the occupant leave.As to all the other legal advice given by non licensed attorneys, you are doing more harm than good with your comments and advice. Marketing the assignment contract does NOT circumvent the laws of brokering, the contract is for the purchase and sale of a property and the “property” is PART of the contract, you can’t just legally “sell a contract” for real estate without the buyer having to know about the property for which the contract is for and advising people to market a contract and not the property is NOT going to save you in a court of law. Intent plays a huge role, there is the letter of the law and the intent of it. Judges and juries will see right through to the intent of the transaction which is to make money by bringing a buyer and seller together which is what wholesaling is. Do that without a license and you have violated the law, end of story.
Now, can someone please pass me some Advil, I have a headache reading many of these posts!
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes6y
Originally posted by @Will Barnard:
It appears that in addition to unlicensed brokering issues here, we also have some unlicensed real estate attorneys here too!
Either people are not reading this entire thread, they are too stubborn, or something even worse.
For the record, a wholesaler with a contract to purchase a property that is currently occupied by anyone, does not have the right to evict or demand they leave, all they can do, via their contract, is have the contractual right to enter the premiss for inspections and contractually obligate the seller to deliver possession at COE (close of escrow). Only the homeowner has the legal right to evict or have the occupant leave.As to all the other legal advice given by non licensed attorneys, you are doing more harm than good with your comments and advice. Marketing the assignment contract does NOT circumvent the laws of brokering, the contract is for the purchase and sale of a property and the “property” is PART of the contract, you can’t just legally “sell a contract” for real estate without the buyer having to know about the property for which the contract is for and advising people to market a contract and not the property is NOT going to save you in a court of law. Intent plays a huge role, there is the letter of the law and the intent of it. Judges and juries will see right through to the intent of the transaction which is to make money by bringing a buyer and seller together which is what wholesaling is. Do that without a license and you have violated the law, end of story.
Now, can someone please pass me some Advil, I have a headache reading many of these posts!
Take 2 shots of whiskey and call me in the morning..,.but after 11AM when I get up:)
Yes...they have truly distorted this entire assignment clause. Selling a contract if you have one to purchase 10K barrels of West Texas crude or 10K ounces of silver is valid and people do it every day. Real estate is unique. Each parcel is unique. I have reported several people for advertising contracts ALONG WITH pictures and descriptions of the property. They are playing games. Most are aware they are violating the law. They don't care. The new guys that have been misled and care about operating honestly simply stop, get licensed, or purchase and then resell. No harm in making a mistake and learning from them. As to the unlicensed attorneys you are correct. They are giving BAD information. Read my posts. I simply state the statutes. That is not practicing law and I won't pretend to be a lawyer on BP. I know this is repetitious but will say it one last time in this thread: there is real HARM done to sellers every day by people playing games with their lives and most valuable asset. Real estate is NOT a game. Try Monopoly.
- Real Estate Broker · Auburn, WA · Member since 2015 · 151 posts · 106 votes6y
Jacob Kline, you have nothing. You've done your walk thru and an inspection. You should (FIRST & FOREMOST) read your state laws. Second, you have no entitlement to the property and the BANK is about to tell you where you stand, NO WHERE!
Because you have an agreement doesn't give you permission to do anything with the property until after it closes and YOU TAKE TITLE! You've created a real issue and because you are harassing the tenant, it would and could come back to haunt you. I'm not an attorney but, I suggest you do some law reading and get an attorney to help you. It's people like yourself acting under the darkness of law (with no license) demanding things protected by law. I hope you get/learn a great lesson with your first deal.
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