Owner who doesn't want to move for 2 months

[John M.]

I received a wholesale lead today that looks good. The price the owner is requesting meets my criteria for a wholesale deal, but the problem is he wants to move mid-january after the holidays are over with.

What do you do with this? Can you close on it asap, but write in the contract that the seller will remain in the property until x date, and they will pay the buyer x monthly? Or maybe just take the value of 2 months of "rent" remove it from the sale price up front?

If this is what you'd do, can you post some sample language that you'd use in the contract?

This is a pretty good deal so I would like to get it locked down as soon as possible, and if there's some language that will allow me to do that, while also still looking for a buyer who doesn't mind waiting ~2 months to flip it, then I think that would be my best option.

[John Thedford]

You can do it either way. If you wait till they vacate to close that is the cleanest transaction. If you close and allow them to stay you then become a landlord in the transaction. Do note, if you close and then allow them to stay the rent must include sales tax. Any rental under 6 months and one day is subject to sales taxes. The amount of the tax is not that burdensome but if you get audited, did not collect and remit the tax, then you will likely have the Dept of Revenue digging through your records for any other violation. I have never had any issues with audits except they are time consuming and a PITA.