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Updated over 6 years ago on . Most recent reply

User Stats

58
Posts
48
Votes
William B.
  • Contractor
  • PNW
48
Votes |
58
Posts

Offer Review, Real Estate Attorney

William B.
  • Contractor
  • PNW
Posted

A somewhat interesting acquisition here. I have an accepted offer on a property that is listed on MLS; I was able to get the seller to agree to significantly discount the property due to it's state of disrepair. The interesting part is multiple counts( I will also include some facts to hopefully help with context):

1. The property is owned by an out of state party and they are leasing the property, thus I will inherit the tenant. 

2. The way the contract is currently written by listing agent is the seller wants me to take possession and close 29 June yet the seller is to collect the last 30 days of rent which would be July's rent assuming a 30 days to vacate notice is used. 

3. There appears to be a marijuana grow room built in the garage, it is legal to grow marijuana in accordance with Oregon Laws, however I believe this grow room does not comply with volume of plant growth. This isn't all that interesting other than it's potential implications I will cover below.

4. I did not use an agent to place this offer, I ordinarily would but my one man entity broker is currently unavailable.

5. all cash deal

6. fix and flip deal, I will be gutting the property, down to studs for rehab

My comments:

  • In reference to #2 I will be restructuring the deal to address this for multiple reasons, 1 is I am interested in getting rid of the tenants as soon as possible, 2 is don't want any lingering "due outs" after closing and possession of the property. I will likely just adjust the offer to cover the $ amount the seller would receive in rent.
  • There are two factors that concern me in the potential difficulty in getting the tenants to vacate the property, 1 is they are paying very cheap rent for the stats of the home and 2 the grow room obviously was constructed with considerable effort which I anticipate may influence them to dig their heels in and potentially squat illegally. 

My Questions:

  • Does anyone have a referral for an Oregon(Willamette valley) Real estate attorney I can have review my offer/contract?
  • Does anyone have any suggestions or experience using an effective and tactful way to get the tenants to vacate quickly (incentive/legal action) ?

I will do some more scouring the forums for similar scenarios, in the meantime I appreciate any feedback.

Most Popular Reply

User Stats

732
Posts
490
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Neal Collins
  • Developer
  • Portland, OR
490
Votes |
732
Posts
Neal Collins
  • Developer
  • Portland, OR
Replied

I'd push back on taking possession on June 29th and still have July rent going to sellers. You're going to have carrying cost and this is a far cry from a seller rent back scenario. If they want the rent that bad then tell them you'll close when the tenants are out.

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