This $200k Profit Deal Was Almost Lost Over an Eviction Battle

This $200k Profit Deal Was Almost Lost Over an Eviction Battle

Real Estate Coach · Derry, NH · Member since 2016 · 283 posts · 217 votes

I’m about to tell you about a deal that could have easily fallen apart, but instead turned into a $200k profit after a lengthy eviction process. This one came from Massachusetts, a state where the eviction laws are not in the landlord's favor. When the lead came in, it was from a brother who inherited a house from his mom. The brother and his son had been living in the house, free of charge, for years, and were gaming the system. The brother was fed up and needed to sell, but there was a significant issue. His brother (the squatter) wasn’t going to leave the property without a fight.

I showed up to the house with my acquisition guy, and things quickly got hostile. The nephew, who had been living there, was livid and started yelling at us to leave. This was the kind of situation where most people would turn around and walk away, but not us. We locked the property up for $240k knowing full well that we were in for a lengthy eviction process.

Massachusetts is one of the most tenant-friendly states, meaning that evictions take time—sometimes a lot of time. We figured it would take six months at least. In the end, it took us a full nine months to evict them.

But that’s not all. We also offered the squatter $10,000 for cash-for-keys, but they rejected it. They came back demanding $30,000, but we knew they weren’t going to accept anything. So, we decided to ride it out and go through the legal process. It was a long and expensive journey, but eventually, we won the court battle and were able to move them out.

After they were gone, we cleaned up the house and decided to list it as-is instead of flipping it. It turned out to be the right decision because we got an all-cash offer pretty quickly.

Once all was said and done, we netted $200k in profit. We managed to bring the property down in price, overcome objections, and navigate the eviction battle, and in the end, it paid off.

The key takeaway here is that if you’re a true cash buyer who can work with private lenders, you can survive long, drawn-out processes like this. Not every investor is willing to take on properties with these kinds of challenges, but if you can make it work, the rewards are huge. Many of our competitors would have walked away, leaving us with the upper hand.

If you have the right mindset and the right resources, properties that others shy away from can become some of your best deals.

Have you ever dealt with a property that took months to resolve? What was the longest eviction or difficult situation you’ve had to navigate?

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  • Greg ParkerBusiness Member
    Realtor, Contractor, Property Manager · Montgomery AL and Kowaliga, AL · Member since 2017 · 670 posts · 536 votes
    1y

    Thankfully our governor here in Alabama recently passed anti-squatter legislation.  So, now rather than it being a "legal" issue, you just call the police, they are forcefully thrown out.  Resist, go to jail.

    Some guys are using this as a preventive measure.  If you have a potential tenant that "might not" be a good payer, just don't sign a lease.  Let them move in with a deposit and first months rent.  Next month if they don't pay on the 1st, call the police on the 2nd.  No lease, no ground to stand on.

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  • Real Estate Coach · Derry, NH · Member since 2016 · 283 posts · 217 votes
    1y

    @Greg Parker wow that’s crazy!  That may be a little too aggressive but I do enjoy landlord friendly states as opposed to the tenant friendly ones. It’s hard to fathom why they would give people like that 9 months and then force the landlord to pay for them to move and get storage on top of it too. Craziness 

  • Johnny LynumPro Member
    Investor · Leesburg, VA · Member since 2018 · 233 posts · 92 votes
    1y

    Wow, what a rollercoaster! Your patience and persistence paid off big time!

    I’ve had my share of challenging deals too— but the payout made it all worth it.

    Curious - would you handle the cash-for-keys offer differently next time, or was riding it out the best call?  

  • Real Estate Coach · Derry, NH · Member since 2016 · 283 posts · 217 votes
    1y

    @Johnny Lynum we did offer them an aggressive cash for keys amount to get them out as soon as possible. We also offered to help them find new housing, relocate them for free and help in any other way we could. We would have preferred to work with them within reason to make it a quicker and easier process. However they made it clear that unless we would pay them something unreasonable, they weren’t leaving without a fight. Which is too bad because in the end, they left with nothing. 

  • Johnny LynumPro Member
    Investor · Leesburg, VA · Member since 2018 · 233 posts · 92 votes
    1y

    Wow, that’s a tough spot, and it really sounds like you tried your best to meet them halfway. It’s frustrating when people push things to the edge and end up worse off for it. On the bright side, you kept your integrity and made a genuine effort—something they sadly missed out on appreciating.

  • Real Estate Coach · Derry, NH · Member since 2016 · 283 posts · 217 votes
    1y

    @Johnny Lynum thanks for recognizing that. We always want to help if people let us. It was frustrating to see but that’s on them. Thanks for your comments and insight 

  • Johnny LynumPro Member
    Investor · Leesburg, VA · Member since 2018 · 233 posts · 92 votes
    1y

    You're welcome! I totally get it – sometimes it's just about being there for people when they’re ready to listen. As real estate investors, we know how valuable it is to offer help when we can. Let’s keep pushing forward. 💪🏡 Keep doing your thing, brother!

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