Property under contract and tenant won’t allow showing
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?
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.
@Will Barnard @Mike Hayes @John Thedford
BP is intended to be an educational site dedicated to just that, EDUCATION. Not endorsements. It is also a great way to network with other investors. That said, they have not endorsed nor do they "support" illegal wholesaling. Your example to sustain your argument of the BP Podcast just shows how truly ignorant you are here. I would encourage you to read a book by the host of that podcast, Brandon Turner. In it he states how reluctant he was to even put a chapter in the book dedicated to wholesaling and he "believes that much of what wholesalers do is illegal." Brush up before making arguments, particularly when contradicting seasoned investors like @Will Barnard and @John Thedford.
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.
One thing not considered is that a seller CAN go after a buyer for fraud in the inducement. IF the "buyer" made no good faith effort to obtain financing or did not have the funds and the seller sustained monetary damages trusting the fake buyer, the seller can and should go after the fake buyer. If enough victims stood up and started filing suits to recover damages by these fakes then maybe other would take note and operate ethically and honestly.
It is hard to comprehend how many people have no issue misleading sellers, etc. NO IT IS NOT A GAME. Either these operators are heartless, ethically bankrupt, or desperate for money. None are valid reasons to harm people.
@Will Barnard @Mike Hayes @John Thedford
BP is intended to be an educational site dedicated to just that, EDUCATION. Not endorsements. It is also a great way to network with other investors. That said, they have not endorsed nor do they "support" illegal wholesaling. Your example to sustain your argument of the BP Podcast just shows how truly ignorant you are here. I would encourage you to read a book by the host of that podcast, Brandon Turner. In it he states how reluctant he was to even put a chapter in the book dedicated to wholesaling and he "believes that much of what wholesalers do is illegal." Brush up before making arguments, particularly when contradicting seasoned investors like @Will Barnard and @John Thedford.
At first glance at your post here, I thought you were saying I was ignorant since you posted my name at the top until I reached the last line and realized quite the opposite.
So with that, I agree and well said. As one of the original BP members, a very long time moderator, AND a BP podcast guest twice, I can say that BP does not endorse anything, they simply offer a means to educate yourself and network with like minded people and it has been a great resource for me both when I was fairly new and even today as a seasoned investor. I can honestly say that without BP, I would not be as far in my career as I am today without them.
@Will Barnard
Oh no...my apologies! It did not turn out as I had hoped via phone for some reason. It should have shown the quoted text as well, but at glad you actually read far enough to see, unlike many commentators...haha!
BP has been invaluable to me as opposed to the "guru" garbage that generally pumps out these one day wholesale wonders. Turner's book "Investing...with no or low money down" clearly shows his disagreement with MOST wholesalers. However, if they can still get one under contract, they'll justify it one way or another.
Okay, a simple question turned out to be something really in depth.
I am sure and along with everyone else, that laws will and are being broken in certain states if you are not licensed and are marketing a property you do not own. This goes with wholesaling as well, in case no one knows.
If people want to break the law in their state and they know they are, obviously as said from this tense discussion, then let it happen. They will get caught or they won't. It's not my business or anyone else's as we have nothing to gain or lose from their actions.
People who want to poke around to purposely turn people in, then great! That's their life style I guess and need something to do to bring others down. They apparently get off on that.
I for one come into these forums to learn. Everyone here is great with all the information being provided, but when a forum like this gets out of control with the same thing being said over and over again to where people want to have the last word and prove a point, then that just take the greatness of these forums away.
Get over it and just give information and stop arguing about some law breaking. The first time it was said, they probably looked it up if they were smart enough and learned that they are breaking the law. Just give advice and walk away. If they still need information about kicking a tenent out when they have no authority to do so, then say it, no need to get crazy about it.
I did however learned many things in this forum though. I now know people like to turn others in for fun, which is negative, and also in Florida you cannot market a property when your not licensed or don't own the property.
Great talk everyone. I am going to move on and learn some things from these forums that will benefit me instead of lingering around on here like a puppy dog who has nothing else to do but to keep barking on here.
I fully support what John Thedford has posted. You are victimizing the tenant. You are brokering without a license. Wholesaling needs to be regulated and licensed in every state, Wholesalers who violate the law should face incarceration.
Okay, a simple question turned out to be something really in depth.
I am sure and along with everyone else, that laws will and are being broken in certain states if you are not licensed and are marketing a property you do not own. This goes with wholesaling as well, in case no one knows.
If people want to break the law in their state and they know they are, obviously as said from this tense discussion, then let it happen. They will get caught or they won't. It's not my business or anyone else's as we have nothing to gain or lose from their actions.
People who want to poke around to purposely turn people in, then great! That's their life style I guess and need something to do to bring others down. They apparently get off on that.
I for one come into these forums to learn. Everyone here is great with all the information being provided, but when a forum like this gets out of control with the same thing being said over and over again to where people want to have the last word and prove a point, then that just take the greatness of these forums away.
Get over it and just give information and stop arguing about some law breaking. The first time it was said, they probably looked it up if they were smart enough and learned that they are breaking the law. Just give advice and walk away. If they still need information about kicking a tenent out when they have no authority to do so, then say it, no need to get crazy about it.
I did however learned many things in this forum though. I now know people like to turn others in for fun, which is negative, and also in Florida you cannot market a property when your not licensed or don't own the property.
Great talk everyone. I am going to move on and learn some things from these forums that will benefit me instead of lingering around on here like a puppy dog who has nothing else to do but to keep barking on here.
So if you know someone is breaking the law, but it doesn’t affect YOU, just simply turn a blind eye? Of course people break the law every day and 99.9% of the time we just watch and that’s that (think speeding, traffic things etc). However there are times where you can and I hope would say something. If you saw someone stealing from a store, would you tell that person they are stealing, and if they choose to not listen simply let it go and say, “eh, it doesn’t affect me”? I would be shocked if that was the case.
There are tons of posts on here and throughout the internet where wholesalers ask how to make sure they don’t “get stuck” buying the house they put under contract. Asking how little of their money they can invest. Making sure they don’t lose money or don’t get screwed by a buyer or another wholesaler yanking their deal. There are some posters who see this in a similar light to the stealing I mentioned above (a person breaking laws that they could possibly stop) and want to act.