Cash for keys advice

[Rachel Pivonka]

Input needed!! We are closing tomorrow on an occupied town house we purchased through auction.com. We have not had any contact with the occupant but based on research believe it to be the previous owner that was foreclosed on. We are planning to offer cash for keys. We are thinking 7 days to get out for $600. My questions is any advice or tips on how to handle the situation? This is the first time we have had to do anything like this. I have read past posts and already picked up a couple tips such as check their drivers license to make sure they are not giving a fake name. Any others? Do I give him something in writing and have him sign it tomorrow or wait and do that on the move out day? Thanks for your input!! This is our 4th property.

[Daria B.]

Do you have an attorney? Perhaps engaging with one that does evictions that can give some input since it "may" lead up to an eviction, if you have to, you will have been ahead of the curve in being armed with the right information. Laws also differ in each area but as with anything I always think it best to have in writing to the person/people what your intentions are. This way you have documented the event.

There is an incredible story by Will Barnard who speaks of his 5-6 year experience when he purchased subject-to from an owner who had apparently had a relationship with someone who also lived in the property. 

Not to discourage you but this was just too much to fathom of what could happen.

I read the entire thread at the time and went back to find out his outcome after finally securing the property. This is the link but if you want to read his outcome this is what is on page 33 of the thread.

https://www.biggerpockets.com/forums/67/topics/649...

I copied this part from that page and for me it speaks volumes on the experience of an experienced investor and what he had to overcome.

"So what did I learn from all of this? Buying subject to an existing mortgage from a seller who has an ex-relationship with an existing occupant is super dangerous and under no circumstances would I ever engage in such a transaction again. The purchase sub2 the existing mortgage was NOT the cause of any danger or added risk in this transaction, rather the purchase with occupants who had a personal relationship with the seller was the factor which caused this long drawn drama. I also learned first hand how very important it is to have capital reserves for what could go wrong."