A possible deal.. In Negotiation

[Justin Aguilar]

Contacted owner in December 2016. Wanted to sell home and having problems with tenant. The tenant would not pay rent. The tenant finally got evicted and now is able to sell her home. She had an offer of $375,000 from an investor. She is willing to take a higher offer from us. She got the home appraised and claims the property can be sold for $550,000-$600,000. She said to make the home sellable, the rehab cost would be $45,000 - $70,000 if decided to higher the value. She has some type of contract with her tenant, where he may be able to sue her. her attorney says that if she sells the home, then in the contract there is nothing that the tenant(George) can do. Please be mindful that the contract has not be checked on our end and it NEEDS to be checked!!

Her options:
1. She can sell the property to an investor.
- rid of her burden a lot faster.

- Does not know when she may pass away

- Will lose more money.

2. Rehab herself and sell

- More cash

- Time consuming, takes longer to get it out of her name.

- Heightens opportunity for tenant to hire an attorney.

- Health issues. Should not continue to rehab in her condition.

If there is anyone in the Southern California area to help guide me through the process and close this deal if its worth it, please contact me ! 

[Kevin Fox]

Hey @Justin Aguilar

As @Steven D. mentioned, the biggest thing is going to be shoring up  your numbers for the rehab and resale.

 Something else  you will want to  be mindful of is the possibility that the tenant's  legal claim against the owner transfers to you at closing. 

If the owner is being advised by her legal counsel that selling the property would relieve her of whatever obligation she isn't currently fulfilling,  it is very likely due to the fact that said obligation would then be the responsibility of the new owner.