All Forum Posts by: Shellie Johnson

Thanks to everyone for your advice. I wanted to give you all an update. So I gave the seller two options and let him make the decision. 

Option 1: 10k of seller money to be held in escrow for eviction costs and the balance will be returned to the seller once tenants are out. Tenant's security deposit to be transferred at close.

Option 2: Closing pushed back until tenants are out.

The seller was "emotional" that he did not read that clause in our offer regarding tenant removal and wanted to us to meet at a coffee shop or elsewhere to "hash it out" because he was "tired of the back and forth". I declined the meet up because it wouldn't change any of the facts.

Ultimately, he agreed to option 2. I know that I could have decided to walk away from the offer, however, I was out of time since this is my 1031 exchange property. My 45 days to identify a replacement property is up this week and I did not think I would be able to find an alternate deal in a week's time frame.

All of the advice was really helpful and I wanted to thank you all for taking the time to respond to my post @ Bill F. @Nathan G. @Mike Bisson @ Eric C.

@Bill F. Thank you for your feedback and advice. It's much appreciated.

@Eric C. The clause was mentioned in the offer that was accepted so therefore it was my understanding that when an offer accepted, terms are to be met. It's really a frustrating situation.

@Nathan G. Thank you for your response.

@Mike Bisson Thank you for your suggestion of monetary compensation. It does seem pretty suspicious that they claim to not have been aware of it when we are this far into the contract.

What are my options? We are due to close in 2 days and the law states the tenant needs 60-day notice to increase rent or evict tenants.  Seller did not see that part of our offer requiring them to evict tenants prior to closing and never gave notice to evict. The broker is saying to just give notice right when we close and collect rent in the meantime. We never met the tenants officially since we were not planning on dealing with them. Rent is currently below market and we had plans to renovate after closing so we could increase rent. Any advice would be appreciated.

Thank you for sharing your story! I hope Josh and Brandon interview you on the podcast. It's motivating to hear that you were able to achieve your real estate goals while still working 80-100 hours a week! Amazing!

I will definitely look into NREIG or asking if the current homeowners insurance will extend coverage to us if the seller doesn't go for the roof repair. Thank you so much to everyone that has responded! I'll keep you posted on what happens with this deal.

@Jaysen Medhurst Thank you for your response! I contacted several insurance companies to see if they would be willing to accept some type of certificate or contract for repair but no one was willing to accept that risk. I contacted the lender to see if they would be willing to move forward with the loan pending a contract for roof repair but again, no luck. We're currently attempting to re-negotiate with the seller for the roof repair. I'm hoping it works out, if not, we'll just have to look for a different deal...

Hello BP Community!

My husband and I are currently in negotiations for our second property. We knew that we would have to replace the roof once we acquired the property. However, what we didn't anticipate is not being able to get homeowners insurance coverage due to the roof needing repair. Our lender wants this information to move forward with the loan. We don't want to lose the deal and I'm looking for advice on how to possibly work around this. Looking forward to your responses.