Can a Buyer post notice?

Question

Hey guys, I am currently under contract to buy 3 sfh's out of a larger portfolio. We are using this aqucition to "date" the sellers and agent, before potentially buying larger quantities(10 home+) at a time.

We own multiple other homes in the same neighborhood these are distressed homes and we have brrred several here already with the same lender we are using now.

I am running into issues getting access to the homes for inspections, appraisals, ext. tenants claiming not to receive notice Property management saying they did it. Property management apparently doesnt have keys to units!? The realitor handing the transaction isnt my go to rockstar but he is the one who brought me the deal there for he gets the business. He isn't on top of things paper work errors, communication issues, generally knowledge lacking, and not being prepared.

What are my options? Communication is our largest problem at 3 homes at 10 homes it will be way worse.

Can my team directly cordinator with tenants? If i cant access Property during due diligence process what do we do? Do I fire this realitor for the next round of aqucitions and bring in my preferred realitor?

Nathan Gesner · Answer

Your contract doesn't really matter. You don't own the property. The seller has given you general permissions, but you have to coordinate through him, then he has to coordinate through the renter.

If the Seller doesn't get on board and work with you, then you will have a hard time getting anything done.

Mitch Davidson · Answer

@Samuel Fletcher Hardy. Sounds like you're referring to the seller's agent. If so, institutional investors, as well as agents like Roofstock who sell for them, tend to only pay 1% or so commission. That combined with the relatively low sales price is a recipe for understandably lacking motivation on behalf of the agent. @Nathan Gesner above is spot on. Your contract has no bearing on the tenant's rights. Unless the seller and/or PM gets involved you're stuck.

Michael Smythe · Answer

@Samuel Fletcher Hardy not an attorney, but in our experience, unless your purchase contract specifically states that the seller/owner is giving you permission to do something - you cannot do it.

You may want to get with an attorney to generate language to add to your next purchase offer to address this:)

Samuel Fletcher Hardy · Answer

Hey Ms.Caroline, thank you for replying!

The agent is a good guy and means we'll but isn't as acute as I've grown accustomed to and his interactions 3rd party individuals rather its a tenant neighbor or appraiser when representing me make me cringe at times. Ultimately we are going to finish out this transaction and try to bring the sellers to our preferred realitor for the next round.

I have cash for keysed before but never thought of incentiving during this stage of things!

Samuel Fletcher Hardy · Answer

Hey Michael, I appreciate the feed back. I am very familiar with our tenant landlord laws in alabama and understand our laws and requirements around posting notice as a landlord.

In my contract it states that we are to have access to the properties through our due diligence period during normal business hours with the stipulation we give the sellers 48 notice. It states nothing about tenant notice anywhere. The question is does that constitution permission from the sellers  to take appropriate actions to access the units.

Our resolution was a member of my staff is directly coordinating and attending the posting of notice by the property managers. We have other rehabs on the same block so its not an issue.

Caroline Gerardo · Answer

Get owner to sign an agreement that you post on the door, under the door, on the mailbox that you will be entering on X date. Dear Tenant I'm selling to Samuel who will be your new landlord he has the right to do two inspections with 24 hour notice. Do this five days in advance and schedule appraisal/inspection/tenant interview everything in one fell swoop. Pay the tenant for their cooperation offer them $75. Make it an appointment from 9 AM -11 AM not all day, never at night, and give them $75 cash.

You don't have any real rights to access. Bypass this agent who is harming your progress. Tell the agent exactly the chores when and where they are to help you. You want agent to show up with YOU and appraiser and inspector to get in all the units on two different days. You need to fly there and coordinate.

If a tenant gets legal on you, ask them what they want or need to give you 45 minutes inside. Get in and video. Give the tenant more if you must. Bake a pie, give them a free cleaning service coupon, a new tv... yes a new tv.

If agent balks about being bossed don't threaten to fire or get angry just don't use him again.

Michael Smythe · Answer

You have no legal right to post on a property you don't own, without permission in writing from the owner.

These sound like Class C or D properties. VERY common for these tenants to NOT cooperate with access and basically lie about it (and many other things!).

Legally, if a tenant will not cooperate with access, most states allow the owner/landlord to post a Legal Entry Notice. But even that can be problematic. Tenants can thwart Legal Entry access by:

- Leaving a minor home alone- Leaving a vicious dog in the property- Threatening violence

Then the only option is eviction.

Can a Buyer post notice?

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