Wholesaler won't remove lockbox

Wholesaler won't remove lockbox

Investor · Richmond, VA · Member since 2013 · 195 posts · 27 votes

Interesting situation I have. I have a seller who lives in Texas and owns a property in Alabama. I live in Virginia. She contacted me thru my site stating she wanted a cash offer on her house. She explained that she had already been working with an investor (who I found out was a local wholesaler) and he had lowered the price multiple times and finally come to her lowest price at $18k. At the same time he let the contract expire and they had a falling out. I tried to get her lower eventhough it was a GREAT deal but she wouldn't budge so I made the offer after seeing the interior/exterior pics (which were great). She accepted and I've already received many calls from craigslist marketing, etc.

ISSUE: One investor drove by and called me stating that there was a lockbox on the property. I found out that it belonged to 1st wholesaler. She gave me his contact information and I contacted him asking him about the property, his contract with seller, and to ask about lockbox. He stumbled around and basically said that he still had an equitable interest in the property. I asked how if the contract expired and between a bad signal and his stumbling, I didn't make out his answer. I have had seller to call, text, email him to remove lockbox and I have also called a couple times and left a voicemail. What is the best way to get this lockbox off?

If I was local I would handle it myself and reimburse the wholesaler for lockbox. I sometimes will hire a field inspector to take pics of properties and put lockbox on property which I had already found a couple in the area.

In my eyes I've put 2 possibilities together if he doesn't respond but I don't know how I feel about them:

1. Try to convince field inspector to cut lockbox off

2. Turn negative into a positive solution. I typically joint venture virtual deals like this with other wholesalers in the local markets for 50/50 splits because sometimes I NEED somebody on the ground besides a field inspector. I was thinking about telling him to be my man on the ground for something small like a bird dog fee. It kinda makes since but to me but it also seems like I'd be rewarding somebody for non-communication and stubborn. Another wholesale recommended I do this.

***I know I could have just asked "How can I get this wholesaler to remove his lockbox from my property" but I thought some details might help

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Investor · Houston, TX · Member since 2009 · 210 posts · 261 votes
12y

Sell the house and change the locks.

See this reply in the discussion

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  • Investor · Richmond, VA · Member since 2013 · 195 posts · 27 votes
    12y

    Also, the wholesaler was also an agent briefly and his license recently expired. I have done some research on him and he seems to not have much experience (no surprise) on either agent/wholesaler side and the fact he is now dodging calls is shady. I haven't gotten angry or lost my temper (not my style) but this hold up is aggravating

  • Investor · Houston, TX · Member since 2009 · 210 posts · 261 votes
    12y

    Sell the house and change the locks.

  • Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
    12y
    Alex,

    It is not your job to get the lock box remove it is the seller's job to have it remove.

    Joe Gore

  • Agent/Investor · Murphy, TX · Member since 2013 · 542 posts · 304 votes
    12y

    Did she refund his earnest money deposit? If she's holding that up that could be a reason. I would send a locksmith over, swap out the locks and remove the lockbox. Put a new one on with new keys and a code of your choosing.

    I interested in how you got her on your site. Organic or PPC ad?

  • Investor · Richmond, VA · Member since 2013 · 195 posts · 27 votes
    12y

    @David - I'm trying to but people need access (I haven't mastered the art of virtual wholesaling when I haven't seen the property AND the end buyer hasn't seen the property) lol

    @Joe - I agree, thats why I have told her to contact him but I'm just trying to think outside the box.

    @Todd - No earnest money deposit on wholesale deals with motivated sellers (or atleast I haven't heard of that). I think the locksmith is another solution I will look into. Thanks!

    p.s. Organic leads only.

  • Huntsville, AL · Member since 2013 · 66 posts · 11 votes
    12y

    Depending on what kind of knob is on the door, the owner might just be able to take the knob off from the inside and take the lockbox off that way...

    Also, how far is this house from Huntsville? With the owner's permission, I'll take the lockbox off and give it back to him (no guarantee on condition).

  • Real Estate Agent · Boynton Beach, FL · Member since 2013 · 68 posts · 7 votes
    12y

    Lots of good suggestions - but what is Organic leads?

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    12y
    My experience is that are usually two, often varying, sides of the story when a seller in contract starts calling other buyers. I wouldn't work with her unless I was sure whatever contract, written and/or verbal, that she had with the Wholesaler A is truly expired and/or void. Have your seen this contract? Are you 100% sure it is expired and that Wholesaler A is out of the picture. If this were the case, you'd get the seller to give you permission to enter and you'd remove the lock box as part of entering. It's her job to work with and communicate with Wholesaler A about the lock box, not yours. It's your job to solve to problem solve so you can enter the house and make a viable offer.
  • Investor · Richmond, VA · Member since 2013 · 195 posts · 27 votes
    12y

    Again to all, we are ALL in different areas. I'm on the East coast in Virginia, seller lives in Texas, and property is in Tuscaloosa, AL. Wholesaler lives in Birmingham and I have been in brief contact with 2 local field agents to do basic work (take pics and put lockbox on).

    @K Marie Poe - The seller sent him the contract and sent me the contract also. It expired late August. Seller has given permission to climb in through the window to enter if need be. I do agree that it is her responsibility.

  • Investor · Richmond, VA · Member since 2013 · 195 posts · 27 votes
    12y

    @Linda Organic leads using SEO (search engine optimization) versus PPC leads which cost money.

  • Wholesaler/rehabber · Arcadia, FL · Member since 2013 · 341 posts · 22 votes
    12y

    you can take out the door hinges and remove the door and put on a new one small cost involved but if the deal is good its isnt a big blow at all. thats what i would do.

  • Investor · Richmond, VA · Member since 2013 · 195 posts · 27 votes
    12y

    I am not able to physically be at the property. I live in another state. I will never see this property in person. Its a virtual wholesale deal.

  • Investor · Houston, TX · Member since 2013 · 21 posts · 3 votes
    12y

    I can help you in Tuscaloosa. Email me and we can figure something out.

    Thanks,

    Chad Raggio

  • Landlord and Rehabber · Newton, MA · Member since 2010 · 2k+ posts · 877 votes
    12y

    If the seller says that the contract is expired and sent you a copy that seems to verify that I would take that. If the other guy has equitable interest and wants to prove it he will get back in touch with you or cloud the title.

    As for the lockbox, if the guy won't take it off I'd tell the seller that her property is not secure as his box is there and he is not cooperating and could have copies or could give anyone the code.

    Tell her that she should call a local locksmith and get them to pick the lock and put new ones on. Have your field service guy (Or one of the volunteers here) get the keys and put on your box and send the owner one too.

  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    12y

    @Alex Harris , do you have any legal ownership or control of the property? Is it under contract to you? Whoever is the owner or person legally in control, have a lawyer send a bark and growl letter sent to him.

    Sir,

    Your contract has legally expired and your refusal to remove the lockbox is an illegal trespass on my property. Both criminal and civil penalties may occur if it is not immediately removed. We will expect actual damages of approximately $500 for the cost of having a locksmith remove the illegal device, another $9,000 for loss of the prospective sale profit, and an unamed punitive damage claim based upon your intentional interference with our property rights and intentional infliction of emotional damages. Is this behavior really worth the possibility of losing your freedom or your house, car, and bank accounts? You have 24 hours to fix this problem before I am authorized to start proceedings against you.

    I really don't like doing these kinds of letters but there are attorneys who seem to love doing this.

  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    12y

    Until you close, it is not your property so the issue is the sellers not yours. If the seller does not want to deal with the other wholesaler who placed the box there (did the wholesaler have permission from the seller to place it there?) simply tell the seller with their permission in writing to you, you will contact a locksmith to change the locks and remove the lockbox.

  • Investor · McCalla, AL · Member since 2013 · 5 posts · 0 votes
    12y

    Alex I live in Tuscaloosa and will be happy to check the house out.

    You can email me at [email protected] - I could run by there today when I'm out putting up my bandit signs.

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