Hey, it’s Joe. This one is from Clara Lao.
She says, “Thanks for answering all of our questions.
If the property is currently tenanted, what do we do? Do we still market the property
as per normal and take buyers to view it?” Well, first of all, you need to find out what
the seller’s plan is and what the tenant’s plans are. Some people say, ‘Well, could I
just to go to that seller and sell it to them on a lease option and take a lease option
fee?” I’ve never seen that work ever, so I wouldn’t bother with that situation. It’s
possible they could have some extra money but the likelihood that they want to buy that
house – I think it’s unlikely. So don’t mess with that. Instead, ask the
seller, ‘When are these people going to be out of the house?’ If they’re going to be
out in just a couple weeks, it might make sense to wait for them to move out, or, if
the seller’s willing to work with that tenant, and a lot of times a tenant maybe wants to
move out before the end of that lease. What you can do as a seller is offer that
tenant, ‘Allow us to show the property, keep it nice, and let us show it whenever we need
to, and then we’ll let you out of the lease as soon as that new person moves in.’ That
way, they don’t have to pay months and months on their lease, you can get a new person in
there and you can get cooperation from them to show it.
Sometimes you have a tenant in there who’s not paying, and then you want to get your
seller to hire an attorney, and get them evicted and get them out of there a quickly as possible.
Sometimes you want to say to the seller, ‘Why don’t you give them $500 to move if they’ll
leave by next Wednesday?’ If they’ll do that, then you can solve the problem that way.
It’s very difficult, well maybe not difficult – it’s more difficult to sell a property that
has a tenant in it than it is to sell a vacant property because the tenant doesn’t have an
interest in keeping it filled. So use some of the techniques that I just gave you in
order to work with those tenants in order to get them out of that property so that you
can get it sold. Now, the other thing that you can do is you
can go to the seller, and let’s say we have that tenant and we want to keep that tenant
because he’s a good strong, solid tenant, but he still wants to sell that house? – He
needs an investor to buy that property. What we can do is take that property “Subject To”
or we could sell it on a land contract to a new investor.
That would be a very easy property to sell and get $10,000 down from an investor who
will maybe get $200 a month income on that property on his $10,000 – that’s 24% return
on your investment – that’s a great deal for an investor plus he gets a property he doesn’t
have to qualify for and he leverages out his income and buys a nice property, so there’s
that way as well. I hope that helps. Thanks.