Welcome back to the channel, everyone. My name is Nathan Payne. And today we’re going to be talking about what can you do if a house seller cannot move out of the house, stay tuned, we’re gonna dive right in, by the end of this video, you’re gonna know exactly what you can do if the house seller can’t move out of the house, and what you can do to help them or what you can do to prevent this from happening. If you purchase a house and the seller doesn’t get out.
I’m gonna go over some of the reasons why sellers don’t move out, especially after you purchase the property. And I actually have a breakdown that I did earlier, where I break down why this happens, how you can prevent it, and all the other details about it. So please stay tuned, I’m going to give you everything you need, in case this has happened to you. So why wouldn’t a seller move out after you purchase their property? Why wouldn’t a seller be able to move or get out? Well, there’s a lot of different reasons. But mainly, the reason is they don’t have a place to go right. So they get lazy, they don’t know where to go after you’ve purchased the home if you’ve let them stay in the property after they’re like, Oh, I’ll have time and they just procrastinate right, so you’ve agreed to purchase their home. And then they’re like, let me take some time, I’ll be able to find something. And then they wait till the last day they look to the last week and they can’t find a place where it takes a couple weeks for them to get approved into a hotel or they don’t want to get into rental where they probably don’t have the money to go.
So this happens a lot when you’re in real estate investing and you let people do post possessions is they say yes, I’ll get out by the end of the close. They are all get out by the end of the month that you’re giving me but they usually don’t because they procrastinate. And that is this has happened probably like 90% of time when I’ve worked with sellers where I’ve said, Hey, you can stay in the home. But right here, check out I’m actually going to break down the reasons other reasons why it happens and what you can do about it, what paperwork you can do what you can do to mitigate this from happening so you don’t get caught with your pants down with a seller that won’t get out of a house that you just purchased. But before I get into the breakdown that I have for you, I want to invite you to my masterclass, I run a free masterclass this Thursday, where it’s absolutely free to learn exactly how to get into wholesaling and doing deals with zero marketing spin. If you don’t know these strategies, you need to use them because marketing can put you in the hole, it can get you in a lot of debt. If you don’t know how to get deals from just working through free avenues.
Go to my masterclass at paynelesswholesaling.com register. And I’ll see you there. And let’s dive right into the breakdown. What do you do if a seller can’t move out after you purchase the home? Or they won’t move out? Or they have tenants that won’t move out? What what are your options? Okay, so let’s talk about it. So usually what happens is, you know, as as you deal with cash, you know, you’re trying to find what’s your cash you’re talking to tenants are sellers that have tenants, a lot of the situation with that happens is they have tenants that aren’t paying and they don’t want to move out. So they just want to sell the property and get out of the situation. So that’s one situation, you’re working with a landlord that wants to sell because the tenants not paying, and they just want you to take care of it and they’re willing to sell it at a discount. Number two is you work with the seller, they live there and you say, hey, I’ll let you do a post possession, but you’re gonna have to move out after 30 days, I’ll give you 30 days and they don’t move out. Okay, that’s another scenario.
So it’s tenants and it’s a seller that won’t move out. So what do you do in the situation? Okay, so let’s first address the situation of a post possession and the seller agreeing to you know, say they’re going to move out after you close on it, but they don’t. Now, this is the thing guys, a lot of sellers will tell you anything you want, that you want to hear. So I’ve done several post possessions after you purchase the property, you let the seller stay in it. And I’d say 90% of the time, they do not leave on time. 90% And it’s because they’ve maybe they think they have more time to move and they don’t really they don’t move fast enough. Maybe it’s they just don’t care, you know about moving and they just told you that but what you can do with those situations is you know, number one, obviously you can evict them right I mean, you own the property you can do an eviction, which costs like $1,000 right or more when I did it, it costs like 1000 bucks and that’s it’s annoying, it takes like 30 days you don’t want him to do that.
Another option is if sellers want to move out but you know they want to do a post possession you can hold back like five to 10 to $15,000 of the their money you know that they were gonna get paid until that will only get released until they move out which I think is a great option to do and in the contract you can say hey look if you don’t move out by certain specific date you will forfeit half or all your money and that will give them incentive but if you don’t if you’re going to do a post possession you don’t hold any money back they really have no incentive to get out right like there’s like Oh, I’m sold it. I mean their incentives should be their word right but weren’t non Senate but they should just honor what they said but a lot of them do not. That’s one of the ways Either you got a victim is gonna cost you 1000 bucks and maybe 30 days depending in which state you’re in, you can hold money back, you know, let’s say their their equity of what they’re going to get paid when you buy their house is 30k, you can say, hey, look, I don’t mind give me 30 Your equity, but you know, you want to stay in it, you want to move out. So we’re going to hold back half of it until you move out and you get all of it right.
So we’re going to give you 30 days. So that’s another option. Another option is if they want to do post possession, and they do not want to move out, you would have them sign a lease agreement, saying, hey, they’re going to rent it back from you, and they can pay you, you know, while they’re staying in it, or you can like hold back a certain amount of that money for they’re going to get paid and just say, Hey, this is going to be applied to the rent. And then obviously, if they don’t follow the lease, you can evict them as well. But having a lease agreement in place is pretty money, you probably won’t, you definitely want to do that if you’re going to do a post possession. But anyway, guys, if a seller can’t and when I say can’t move out, I don’t think that’s like a good word. Because it’s really like they can they agreed to it, you bought their house, if they won’t move out, after you close on it, and you do a post possession, you got eviction option, okay. And that’s without having a lease agreement, you can evict them, it’s going to be kind of messy, and it’s annoying. 30 days, at least 1000 bucks, at least, you can hold money back at close. So they don’t get paid or lease agreement, right and make them pay the rent while they’re there. So those are the three options that I can think of off the top of my head, if a seller won’t move out, I mean, you can’t really go in there and beat him up and take them out, right, like that’s just not going to work.
Now the other problem that we’re going to talk about with for Cash for Keys is if it’s a tenant that they have, if you’re talking to a landlord that has a tenant that they don’t want to get out, and the landlord is like, look, just take care of the problem. I’m so upset with you the discount, but I wanted to deal with this situation. I’m dealing with one of these situations, and often the lady wants to sell her house but you know, her son’s friends won’t move out. And she’s called the cops and the cops are like, Hey, we can’t kick them out. Because they have squatters rights, which is the stupidest thing I’ve ever heard. They literally can take control and possess a property without having any ownership to it just because you know, they they slept in or whatever. So she went with the cops, the cops wouldn’t do anything said you have to take through the court system. So even if someone doesn’t own the house does Emily’s scream, you still got to go through the court system and a victim. Unless you go there and start weapon submit weapons may be like taking them out. But then again, that’s that’s I guess that’s frowned upon.
I meant if you want to endanger your life by fighting off some squatters, I don’t recommend it. Even though I had a situation where I had to kick out a squatter in California. And it got kind of crazy. I can tell you guys about that story later. But usually, what you guys are going to want to do is a Cash for Keys situation. So what you’re going to want to do is if you are working with a seller, landlord seller, that’s the landlord that has a tenant that doesn’t want to move out, you say, hey, that’s fine, I’ll take care of it, don’t worry, you bake it into your price, the purchase price that you’re giving them your offer, how much like risk it’s going to take to get rid of this person. And this first thing you’re gonna do is you’re gonna go to that the tenant that’s there, whatever that’s leaving, you’re not squatting, you’re gonna say, Hey, we’re gonna do Cash for Keys, I’m gonna buy this house and you have two options. One, if it’s a tenant, right, you can say, hey, one, I can give you some money, right? Now you made the keys, and I’ll give you some cash, and you can get out of here, and I’ll give you a couple days or two, I can evict you and you’re gonna have an eviction on your record. And it’s gonna be hard for you to get be able to rent anywhere else, and no one’s gonna want to rent to you.
So those are your two options, I can give you some money right now. And you can get the bump out of here, or I can evict you. And it’s inevitable, okay, and I’m gonna do it because I’m buying this house. So guys, here is the Cash for Keys agreement that I can give you guys, if you have any of these issues, basically, before you give them any money, have them sign an agreement, and I wouldn’t give them any money until they are out of the house. But you could say in good faith, you sign this, as soon as you’re out, I’m giving you the money. And then you would just use this and you would obviously you can edit this, but you would agree on a certain amount for them to get the bump out of there. So that is agreement I can give you guys, if you run into this problem, you’re going to if you’re working with a lot of landlords, which are absentee owners, you’re probably going to run into this problem a lot. And I have as well. But you know, if you’re going to buy it, then you’ve got to deal with that situation. If you’re going to wholesale it and the buyers got to deal with that situation.
But most buyers understand, you know, the Cash for Keys. So that is what your options are. So let’s review it and then I’m gonna bounce and go to the gym because it’s Saturday, if a seller cannot move or won’t move out, there’s two different scenarios if it’s a seller that lives in the property that you’re working with. And they said you gave him a post possession and let them live in there for maybe like 30 days and they don’t get out you have three options, you can evict them, okay, you can hold money back from their what they were going to get at close, you can say hey, look, you’re owed 30. But I’m going to hold back 15 of that until you move out and then it’s going to get released to you. It’s going to be held at the title company. They’ll give it to you as soon as I can verify that you’ve moved out of the property. Or you can do a combination of the both both you can have them sign a lease agreement, you can hold money back and you can evict them if they don’t get out.
That’s if it’s a seller that you’ve worked with you gave a post possession Now the flip side is if you’re working with a seller, that is a landlord that has a tenant that will not get out or a squatter, you can go directly to the squatter, or the tenant and say, hey, look, I’m buying this house, I’m the new owner, I’m going to be the new owner, or you can say, I’m the new owner, there’s two options for you, you can do Cash for Keys, and I can give you some money, I can give you 500 bucks, and I give you five days to get out. And you know, I’ll give you that money once you are out of here, or I can evict you, and it’s gonna cost me money, it’s gonna cost me time. And I’m not, that’s not what I want. I don’t think you want that for me.
I don’t want that for you. But if you have an eviction on your record, then you’re going to not be able to rent anywhere. Because people that try to rent out properties they see they see that if you have evictions. And do you want to rent to someone that like didn’t pay rent before? Now, that’s like the first indicator to not rent to somebody. So you can explain that to them. And that is how you deal with working with a seller that can’t move or won’t move. And you guys can like, you know, dive a little bit deeper be like, Why aren’t you moving? Do you not have a place to go? And you know, usually want to figure that issue out before you buy the house if you’re working with the seller and doing a post possession. But if they can’t move for some reason, just is it because you don’t have a place to go? Or is it because you don’t have a place? Like you don’t have a moving truck, you can’t move your stuff.
And then you can kind of talk to them and be like, hey, you know, maybe I can help you out with a moving company. You know, you guys pay like, whatever like 200 $400 I have a great mover named Robert he does it for like he’s like 50 bucks an hour knocks out like in like four hours. Anything. He’s amazing. So you you can talk to him about it. But usually people do not move just because they’re they you know, they don’t want to go pay for somewhere else. I mean, that’s squatters, for sure. And then people that aren’t paying rent Yeah, they don’t want to pay but if it’s a seller, maybe it’s they didn’t have a place to go.
So you want to figure that out. You don’t want to buy something and just you know have to evict somebody you know, there’s no place to go to try and figure that out. If you liked this information, please like subscribe, hit the bell icon so you get notified of more and more videos that we do. I come out with videos every week and I want you to see them. Please help me out and I’ll help you out.