Potential 1st Deal! Help!
Hello, well I might just have my deal. I mean we all have to start somewhere. Dont we?
There is a property in LA that is being sold for 320,000. I talked to the investor and he needs to sell the property within 6 months because he is moving. Well, the property has tenants that have not paid rent for months, because of the fact that the owner evicted them. So the owner told me that they are slowly making holes in the wall and slowly doing things to the property to get back at the owner, and is currently working at trying to get the tenants out. Can anyone give me some advice? Should I just bird dog it to someone? :-o
Why are the tenants still occupying the residence? I’m not sure about the landlord/tenant acts of your state, but I’m almost sure that they can be physically removed at this point. It is very important to have tenants that are damaging the property removed before they cause more damage or before they chase off other good renters.
I would wait it out and see if and when the tenants are physically evicted. You may be able to line-up some potential tenants in the mean time. Good luck!
Well he said that he has attorneys working on it right now, so should I just wait to see if any progress with the tenants? Should I take over the property, as-is?
I suppose that I would have to base my decision on how good of a deal, overall, you have on your hands. It also depends on how much damage the tenants have caused to the property. This will have to be a personal assessment, by you, of the property.
It is likely that by the time you close on the property, the tenants will already be evicted. Nonetheless, I would not hold much credence in the owner’s efforts to evict if the property is to be sold.
You might be able to have a seller concession clause indicating that all damage caused after the initial contract agreement and prior to closing will be repaired by seller.
I’m fairly new to the investment scene, so there probably are many others here that might be able to help you a lot better than I. I thought I would give it a shot though.
Good luck!
In CA the landlord has to follow specific steps to get the tenants evicted. First, he must post a 3-day pay or quit notice. If they do not pay after 3 days, and they do not move out, you must take them to court. To do this, you must Serve them with papers. Then you go to court to get them evicted. If they are not paying rent, you will win the case. However, if they do not move out, you then must go get ANOTHER court order to have a sheriff physically remove them.
You cannot, under any circumstances, change the locks, throw their stuff out, harrass, intimidate, make their lives uncomfortable (like turning off the heat, removing things from the property like a microwave or washer/dryer) etc. You must follow the letter of the law.
Find out what the landlord has done. This process can take 60-90 days, and I would recommend you hire a lawyer if he has not already. The longer you wait, the worse it will be.
You can probably get a case against them to pay damages, but good luck collecting.
In the situation I went though, the non-paying tentants did not have a car. I happened to have (read: go buy) a $300 89 Honda Accord that worked fine. I wrote up a contract that said if they put all their stuff in the car, and moved out that day, I would hand over the keys and the pink slip. They moved out the same evening.
Car = $300. Lawyer = $3000. Yes, I lost $3000 by not thinking creatively. Be smart and you can probably ENTICE them out with something they want/need. Maybe offer to pay them $500 cash? You get the idea.
Good luck!!!!
i know someone in north county san diego would have problem tenants. she offered them each $250 cash if they cleared out in in 24 hrs. worked like a charm.
what you have not said is what the property is worth. Is he willing to assist you with the financing. how much will you be able to get in rent when the deal is done will it make all your expences.
ECT....