Subject 2 Deal Going South..... - Posted by Greg in Dallas

Real Estate Investing
1

Posted by Greg in Dallas on June 30, 2003 at 14:09:27:

Great advice David!

Thanks,
Greg in Dallas

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Subject 2 Deal Going South… - Posted by Greg in Dallas

Posted by Greg in Dallas on June 28, 2003 at 16:24:28:

I closed a sub 2 deal in April and the lady was supposed to be out by the end of the month (relocating with job). I started marketing the property immediately. Did a few showings. I talked to her in April, May and then in June and she advised me that she would be moving in June. I went by the house a week ago and noticed my signs had been removed from her yard and the lock box was not on the front door anymore.

She’s been in and out of town dealing with sick parent. I’m not sure how to take the missing signs and lockbox. I spoke to her about this and she said she took them off because she was going to be out of town. I’m not sure how to deal with this one. I don’t know if she’s trying to back out, or had a change of mind. I haven’t recorded the docs yet. Any recommendations or anyone ever had an experience like this before?

Thanks,
Greg in Dallas

3

I hope you haven’t… - Posted by B.L.Renfrow

Posted by B.L.Renfrow on June 28, 2003 at 17:00:24:

…put any money into this deal yet…though I suspect you have, since you said the sale was closed in April, and it’s now almost July.

That’s a good example of why it’s generally a bad idea to do a subject-to deal with the seller still occupying the property. As soon as whatever crisis was looming is resolved – thanks to your involvement – sellers suddenly become much less cooperative. Obviously, this seller still thinks of it as HER house.

One problem here. A big one. It ISN’T her house. It’s yours.

I suggest you get off the internet right now…this minute…and get over there and knock on the door (YOUR door) and find out EXACTLY what is going on. We’ll wait until you get back…

OK, one of several things happened:

  1. She wouldn’t answer the door.
  2. She told you she’s “changed her mind” and has no intention of moving.
  3. She gave a sob story and asked for more time.

And here are some ideas how you could respond.

  1. IF it was a marginal deal in the first place, and IF you have no money into the deal, and she has become uncooperative, you could just tear up the deed and forget the whole thing.

  2. If you have money into it, you go down to the courthouse first thing Monday and record your deed, then you have to make a decision how to proceed against the former owner. Evict? Offer her moving money? Rent a U-Haul for her?

  3. If you have no money in it yet, but it’s a good deal, it’s maybe a little more of a gray area. If this is the case, you still may want to proceed as above, but that’s a decision only you can make, with all the facts at hand.

Good luck with this…and do let us know how you make out.

Brian (NY)

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Re: Subject 2 Deal Going South… - Posted by David

Posted by David on June 28, 2003 at 16:34:01:

Since you have docs, ASK HER. Shes the source of your befuddlement, go to her.
David

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Re: I hope you haven’t… - Posted by Greg in Dallas

Posted by Greg in Dallas on June 28, 2003 at 18:01:20:

Thanks. I don’t have much invested in this house, other than my signs and time. Maybe $300 at most.

I’ll keep you posted on the turn of events.

Thanks,
Greg in Dallas

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Re: I hope you haven’t… - Posted by DavidV

Posted by DavidV on June 29, 2003 at 23:03:36:

Good advice above. Next time if you want to give someone a week to get out, you may want to put a rental amount for every day they stay late. If you average $30/day on your rentals (about $900/month) then charge the seller $50-$60 day rent for every day they are still in the premise after July 1, or whtever date. Works for me so far.