Lease option seller wants OUT! Advice needed..

[Account Closed]

Ok I am a full time wholesaler, Seller wants OUT! tenants are not paying since Feb 1st. Owner wants me to take care of the problem :) .. Anyways how do I handle this? tenants want 15k to move out, owner said that he won't give them no more than 5k to reimburse them for the doors, and AC unit they put in. Owner also said he will give them an option to not go legal and evict them or if he has to go legal and evict them then they won't end up with nothing. Owner also recognizes this isn't his business and wants me to handle it which is fine, so the best option for me would be if the tenants don't cooperate, than to call up an eviction attorney start the process etc..

Thanks for any help!
John

[Scott Moyes]

Just an FYI: Here's the things the Judge/Court Advised me not to do. BTW, it is the Law in AZ and enforced in other states as Case Precedent.

1. You CANNOT pre-determine a future purchase price or discounted buy out.
2. You CANNOT collect more than 1.5x more than the monthly rent upfront.
3. You CANNOT credit any part of the deposit or rent toward a future purchase.
4. You CANNOT require the Tenant to do ANY maintenance
5. Two Documents (Lease & Option) doesn't matter as long as the Leasee has the Option, it is considered a "Sale", period.

These five things classify the transaction as a "Delayed or Disquised Sale" and gives an Equitable Claim of Interest IN THE PROPERTY to the Tenant which makes them "an Owner" and you can't evict an owner, you must foreclose.

What I learned is, the reason most Tenant / Buyers are successfully evicted is, they don't know their rights "as an owner" and just leave believing they have to. If they appear in court and Claim Equity, the eviction Judge CANNOT hear their case. You must go through with a full foreclosure action instead. Sucks Huh?