Wholesaling a house with a Non-Paying Tenant

[James Vasquez]

Hello BP members,

I've learned a lot from BP over the past few years, but have never actually asked a question here on the forums, because I've usually been able to find the answers in other forum posts...However, I couldn't locate a good solution to my problem elsewhere.

I have a motivated seller that is in agreement with me on price and terms, however, his brother is currently living in the property and not paying. The seller is telling me that there is not a lease and that he does not want to brother to know that he's selling it and he does not think that he will sign anything and that he will not leave peacefully.

Here's my question. My fear is that I buy the property, and then try to evict, then the brother (tenant) shows a lease that I never knew about. I think that at that point, I would need to let him rent until his lease expires. How can I protect myself before I buy? I appreciate ANY help from investors that have gone through this themselves. I don't want this deal to fall apart, but I don't want to tie up my money either.

[Michaela G.]

Maybe the seller is willing to keep some funds in escrow at closing, which he'll get out after a week or so when you've talked to the tenant? And since the seller is not lying, of course, he shouldn't have any problem with that ;-)