2nd deal under contract, turning into another learning experience

[Matt Whiteside]

Well it's been a week since I closed on my first deal, and I am now moving on to deal number two.

A little background. This was actually the first call off my marketing that I sent out in Feb. Out of state owner of a house that is paid off. There are back taxes owed and had to be redeemed by April 25. Owner called me and told me she didn't want the house and was just going to let it go, I offered to pay the back taxes of $11,500 and give her $1000. She agreed and then told me that there were squatters living there. Turns out it was her stepson but they didn't have a lease and he has never paid any rent. I asked her if he would let me see the house she said she would call to let them know who I was and that I would be stopping by. Well I went over a couple days later knocked on the door no answer, so I left a note on the door explaining who I was and to give me a call.

After a week and no response I called my lawyer, he had the seller give me a limited power of attorney to evict the stepson. We served him with a 10 day notice to leave the property this was on Feb 28. Ten days go by he is still there, now the redemption date is coming up in less than a month. I go over to see if I can talk him into leaving and find that he now has a giant pitbull chained to the front porch. There was no way I was knocking on that front door.

At this point I didn't think it was worth any more of my time and money. I would have to then go to court and put money out and I have yet to see what the inside of this house looks like. Since this would have been my first deal I just wasn't ready to deal with the headache so I just kind of forgot about it.

Then in May I got a call form the seller and find out that the Tax redemption date has been moved back to Sept. So I told her ok lets try this again, I send her the option contract and tell her to sign and send back. I go over to the house and leave a note saying that I will give him some money if he leaves, call me asap. Well again nothing from him, so I tell the lawyer lets move ahead with the eviction. I fork out $700 to get the ball rolling, but then I don't get the contract back when she said it would be there, then try calling her and can't get a hold of her. WORD OF ADVICE don't put out any money until you have a signed contract.

Then I get a call from the mother of the guy living in the house saying she just got my letter saying I would give him some money. Turns out he is in jail since April 29 and what is going on with the house. At this point we have a court date set for the next day, I still don't have my option agreement signed and I haven't seen this house. The mother says I can come over that day and look at it, so I do and to my surprise it's not as bad as I thought it would be. I talk to the mom and she tells me she is trying to get the house cleared out but doesn't have any money, I tell her I might be able to help with some moving costs. So the next day we go to court and I was going to ask the judge to give them 30 days to clear out, again I still don't know if I even have a deal. My lawyer gets an extension until June 27.

Here I am thinking I just paid to evict this guy for the owner, but then she finally called me and said she will send out the signed agreement right away, what a relief. So got the option agreement and then ordered title for it. Went over to the house on Friday to take measurements, I was looking to have the house listed this past Monday. Talked to the mother of the guy in the house and asked her when she plans to have everything out, she says she is working on it, but everything costs too much she says. I then tell her I would like a key for a lock box so I can show the house, she doesn't want do that. She will come over and let anyone in that wants to see it. I told her let me think about it.

So today I decided not to list it until they are out, I called her again today and said that I will give them $500 for moving costs but they have to be out by next week June 26, the day before our next court date if they are out I can just have the case dismissed.

I know that she is trying to stall me and that we will have to go to court, the son doesn't get out of jail until July 22 and she is trying to make me wait until he gets out and can deal with this himself.

I am trying to be a nice guy about this but I now feel they are trying to play me. Hopefully this will be resolved soon and I can get his house sold.

I'm sorry this post is so long, but I wanted to give people who are wanting to get into wholesaling a look into what a deal can look like. Yes you can make good money doing this but it does take money to make deals happen. Also be prepared for anything and everything, no two deals are the same.

I will update as the deal progresses.