Deadbeat Tenant Wholesale Deal Problem

[Sam Ray III]

I was given a lead on a wholesale deal, The tenants that are currently in the house haven't paid rent in months and won't answer the owner's phone calls. The owner says he is very motivated in selling and is ready to start eviction but the owner lives in another state. So it's no telling how long it might take to get them out.

I visited the house and the tenant refuses to let me view the inside. so I have no clue of the condition of the inside of the house. I gave the owner an offer based on best case scenario (which is most likely not the case) when it comes to rehab & repairs, and I told him it could easily change after we see the full condition of the inside of the house.

He sounded interested with the number I gave him and said he wanted to pass it by his wife. If he comes back and we agree on a number what do you guys recommend I do as far as contracts.

I have cash buyers I would offer this deal to, and I have done a few wholesale deals in the past with vacant homes, but I have never done any assignments with property with tenants in them, let alone delinquent & uncooperative tenants. I do not have the money to offer cash for keys (unless they where willing to accept maybe $100)

Would it be reasonable to write a contract NOW with a clause stating we can't close until the tenants are out or should I wait to write-up the contract after the tenants have been put out? (considering it might take 30-60 days for the owner to get them out)

any advice or incite would be great thanks.

[Account Closed]

If the seller accepts your offer and said he will evict the tenants before closing you need to put the full amount in escrow to protect the seller. And be honest with the seller and let them know you are not the buyer you will be wholesaling it.

Joe Gore