All Forum Posts by: Jorge Caceres

@Jeff Copeland  thanks for laying it out, the only other one I have seen come up now and then is a tenant claiming to own an appliance (and sometimes they do).  So the poster might want confirmed that all appliances are property of the landlord and list any that are not.  

I would be surprised if the tenants would sign another lease if they already have one. There would have to be some sort of benefit to them. You will be unable to force them to do this.

@Jorge Caceres

hire a PM and have them lead

@Jorge Caceres you need a signed estoppel stating what is on deposit rent, state that the tenant owns no appliance if that is the case and any they own etc if that is true, the tenant signs before closing.   I assume you already know the tenant is current on rent and you instru ct them immediately on closing to send rent to you.  Deposits are transfered at closing.  You are bound by the current lease until expiry but you can ask them to sign a new one.

@Jorge Caceres you need a signed estoppel stating what is on deposit rent, state that the tenant owns no appliance if that is the case and any they own etc if that is true, the tenant signs before closing.   I assume you already know the tenant is current on rent and you instru ct them immediately on closing to send rent to you.  Deposits are transfered at closing.  You are bound by the current lease until expiry but you can ask them to sign a new one.

Great move using your own title company. Next, lock in buyer-friendly terms: use your own purchase agreement, keep EMD refundable, and get a solid inspection period. Verify the wholesaler's equitable interest, chain of title, liens, and legal description. Require full inspection access (general, sewer, roof, HVAC, termite) and budget based on real findings. Confirm rents, leases, deposits, and utilities with third-party proof, not just their word. Set clear timelines, prorations, and disclosures, and keep your agent or TC in the loop. Be ready to walk if anything doesn't check out.

What sort of wholesaler is this?  Is it one of the large popular wholesaler groups or just someone doing it solo?  That would make a difference in how I approach it.  Keep in mind that if this is a steal and you request all of the above that some people are suggesting, then there's a chance the wholesaler won't deal with you and just take it to someone that is less "needy."  

Great question. I recommend reading the assignment agreement closely. Confirm who pays which closing costs, access for inspections, and the exact purchase price you are taking over. See if they would also be able to share the redacted purchase and sale agreement they have with the seller, so they can block out the sellers name and purchase price if that makes them feel more comfortable. This lets you confirm they are actually under contract with the seller and see their terms the have with the seller.

Quote from @Jorge Caceres:

Quote from @James McGovern:

What assurance do you have that the current residents will depart at closing?

Part of the deal is that the tenants will stay and their deposit will be transferred to me. I usually screen my own tenants, so I'm asking for more information about them (FICO, employment history, etc.) and am planning on meeting them.

It sounds as though it is a rental vs personal home. That is good for you, it should have fewer legal problems if you have to evict.

A tenant will tell you everything that is wrong with the house. If they are happy, they will stay. I usually get proof of last 12 payments made on time, from the seller. I don't particularly worry about bad credit if they pay on time. In most jurisdictions you can do a quick check to see if an eviction has ever been filed against them. That to me is a bigger issue.

I'd inspect the big ticket items to be sure I new what I was buying, sewer, roof, heat/AC and so on. You can call the local police and see if any police have been dispatched to the address. I'd drive by after dark and see what kind of neigborhood it is at night.