Even though Mark Monroe from Creative Real Estate Investing was only within a few hours of a new property in North Florida, he thought it’d be a great time to try virtual wholesaling. A fellow wholesaler who was coaching him through the deal suggested he just put a lockbox on the house and give the code out to potential tenants so that they could check the property out themselves.
After a week of showing the property, the fifth couple to visit the house reported that the lockbox was gone and that someone was clearly living in the house. As Mark prepared to take legal actions against the squatter, Covid-19 shut down the courts. Without the law to back him up, Mark had to wait until the state would allow evictions again. And in the meantime, he had to keep paying the mortgage on the property.
It seems like it should be easy to evict when a tenant doesn’t even have a lease to live in the house. But the squatter was a housing inspector for the county, and he had a pretty slick operation going on. Mark and I talk about his options for taking legal action now so that the guy never does it again.
“Just pay the Realtor one month’s rent”, recommends Mark. It’s going to be worth it when you have a good deposit and a background check on record. Mark’s been in real estate in some form or another since ‘95, but this is a pretty fresh story for him. It’s proof that anyone can have a deal go bad. For more stories about real estate investors’ worst deals, text the word BAD to 313131.
Watch and Learn:
Listen and learn:
- Evicting a tenant that’s shot up the place and who chases away all over potential renters can be tough, but Mark has some creative advice.
- Virtual wholesaling can be incredibly successful, but you’ll need more than a prayer and a lockbox.
- Who you need to partner with to support your virtual wholesaling business, and why it’s worth the money.
- Licensed mortgage brokers should review your tenant buyers to make sure they qualify.
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