All Forum Posts by: Jason Drayer

Hi Luke.

 Would you be able to send me a list of some additional lenders in Florida? I have been using a few different ones, but their turn around time has been slow. They also all want 25% down for their investment conventional loans. I would think that there are still some lenders accepting 20% at this time.

I appreciate it!

We are currently working a deal to purchase a home. It has current tenants, which we are not concerned with, but it also provided them an option to buy until 12/31/2020.

This additional clause was added to the lease:

 “ 29. This property is for sale. If an offer is made and accepted with funding approval from a bank, the tenants will have 60 days to vacate the premises unless the purchase is being made by the tenants."

The Option to Purchase section had the below info:

47. Provided the Tenant is not currently in default in the performance of any term of this Lease, the
Tenant will have the option to purchase (the "Option") the Property for $XXXXXX (the "Purchase
Price").

48. This Option may only be exercised at any time prior to its expiration at midnight on December 31,
2020. Upon expiration of the Option, the Landlord will be released from all obligations to sell the Property to the Tenant. If the Tenant does not exercise the Option prior to its expiration, all rents and other charges paid under this Lease will be retained by the Landlord, and neither Party will have any further rights or claims against each other concerning the Option.

51. The Landlord warrants to the Tenant that the Landlord is the legal owner of the Property and has the
legal right to sell the Property under the terms and conditions of this Lease.

It’s hard to tell from a legal perspective, but with the additional clause added does it appear that we can purchase the home before 12/31/20 or should we draw up a contract with the closing date in January?

@Bob Reinhard it's the location. Where we are the prices haven't been close to a 1% deal. This one is actually close to a 2%. It has its flaws, but we believe this deal could be a success. We are wanting to stay close to where we live because we have chosen this route and property manage ourselves.

We are currently in the process of purchasing a wholesale SFH. The deal is really good for the area we live in, so we are trying to find out the best way to approach this situation.

The seller has two tenants in the home. Both are on verbal month to month contracts of $500 (supposedly) rent per person. He normally has three people in the home, but one moved out when he learned the owner was selling. I have asked for an estoppel agreement to determine if what he has told us is what the tenants agree to.

This is a 2 week closing time frame, which isn’t much time to evict a tenant, but these tenants do not have any prior lease agreement nor anything in writing indicating a lease. The seller refuses to evict them because they are friends and he doesn’t want to do that to them. The seller has now tried to inform us that he will not provide needed documentation to the title company as a way to avoid him having to remove the tenants while we are in the closing process. The contract states that the home will be unoccupied at closing, so I don’t know if he is just trying to cancel the contract at this point.

The entire situation is very odd. I know people mention cash for keys, I could also look at trying to set up a shorter lease, or we could perhaps provide them a written letter asking them to vacate. Without a lease agreement in place I am assuming the COVID no eviction situation will not be a concern, but I am not sure.

Any words of advice on this crazy situation?

I have a military tenant who will be moving out early due to orders. His 30 days goes into mid August, so he will be paying rent for the month of August. He is actually moving out on the 3rd, so my question is if we are able to rent the home out before Sept 1st, and get an early move in applicant would we pro-rate and give the past renter a portion of his money back? This is just a what if scenario, but I presume this is the correct tactic?

Hello All.

We are excited to be a part of the BiggerPockets group. This website, forum, books, and podcasts all have been so helpful.

In fact, we just had our first investment property offer accepted for an REO property today! This location is in Niceville, FL. We are now going to ask for some recommendations on Home inspectors in the area? We are super excited and nervous to take on this new venture.

Thank you all in advance!