All Forum Posts by: Justin Abdilla

I don't know what the laws in Canada are, but I can tell you in Illinois you can't just evict someone even if you have every right to evict them.  Most jurisdictions in the United States require that the tenant be properly evicted by order of the Court to make sure that things stay peaceful.

If they refuse to acknowledge receipt of the notice, send it again, and hire a private investigator to both send it and make an affidavit of service.  That's how we do it in Chicago, especially with pesky Tenants who would never open the door to a squad car coming to deliver some "Get out papers."

Hate to tell you this, but you probably need to call an attorney in the area that the property is located.  It's very inexpensive to evict a tenant, and sometimes I can't even believe my own bills to do it are so small.  You get a world of protection if you do this the right way, from having your insurance be more receptive to covering tenant damages, to having the police more easily remove the problem tenants, to having the sheriff pull out the crummy property they left behind and billing it to the tenants for the removal.

Good luck!

This sounds like a feasible plan. I work out of Illinois, and I think the biggest hurdle is probably getting the bank to sign off on the deal. Since he only bought the property several months ago, he might very well be under-water, which would really make things difficult for you, because the Bank is going to want to receive a percentage of the debt on the property rather than its FMV.

Joe from Plymouth hit on a great point here, that what you're really suggesting is either a seller-financed transaction or a Land Contract.  These come with outsized risk that you may not be analyzing correctly.  How exposed are you if this tenant who is having a hard time paying $500/mo can't pay $450/mo?  What does this do to your available lines of credit?  Do you actually want to own this property if it is vacant?  What's your exit strategy?

If you want to keep the current occupant of the property on as a "reliable tenant," you have to know most banks are not going to allow the person who sells a property while it's under water to reside in the property after they complete the sale (at least, in Illinois).  Depending on the structure of the transaction, you might be proposing mortgage fraud. Mr. Stanoev hit on this as well for you.

I really think the analysis is "how does this make me money?"  I don't know how it does.  You're paying really close to a 100% basis in the property if you're paying $41,000, closing fees and repairs to get a property that you believe is worth about 125% of that.  If you spend $1,000 on the closing and $5,000 on repairs, you're in a $53,000 property for $47,000?  I think you could do better than that, especially with all the hurdles you'll have to overcome to make that happen.

I'm not licensed in Texas, so don't take what I say as the gospel, but I know I wouldn't recommend this transaction to a client of mine in Chicago.