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moveright

Looks like I got cut out of my first deal

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Well, I had an out of state seller who was leasing his house here. He wanted to get rid of it and was really excited about a lease purchase. Anyhow, I sent him the agreements, he signed them and returned them, then this weekend he flew up here to clean up the house since his tenants had just moved out last week.

 

I met him at the house, took all the pictures, then he told me he was so motivated to "get someone in here" he's dropping his price. GREAT! He had been posting on CL to rent the house and had a huge response. He told me he actually had someone coming to look at it that afternoon. So, I left to come back to my house and redo some of the numbers.

 

He calls me and says "Mike, these people are ready to move in like NOW. How much do they need down? I told him the figure was just over $7k. He said "ok, well I'm going to take a 3k deposit from them now since that's the amount I was going to get at move in from you". I told him he can do that but if he wants the lease purchase, the whole amount needs to be to me and I cut him a check. PLUS I need them to sign my paperwork to make it official. Mind you I had already told him this was WAY out of order of how the process should work and that by not even checking them out background/credit wise that this was really a hasty move and may not turn out well. He didn't seem to care, he was so pressed to get someone in there.

 

So, he calls me 10 minutes later and says "ok, they're gone, I took the deposit and they told me they have the other $4k for you. Originally they just wanted to rent but when mentioned the rent credits and so forth they were really interested in the lease option, so give them a call". I told the seller that he just handed keys to his house to someone who has not been screened and IS NOT EVEN BOUND TO ANY LEASE AGREEMENT! holy smokes! he said "well I've got my own lease paper and they are going to be one either that one or yours come monday, I'll make sure of it!".

 

so, I called the new tenants with no answer. left a message, no call back. emailed them, no reply.

 

Honestly, I feel like calling the tenants and saying "looks like we have a small problem because I'm in a lease agreement with the seller and scheduled to take over november 1st. So, unfortunately, you've got keys to my house, unless of course you'd like me to assign the lease agreement to you".

 

I'm not going to do ANYTHING until I get some feedback from you all.

 

In closing, I'm pretty sure I just got cut out of my first deal. :closedeyes:

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Agreed that the homeowner overstepped his bounds, but I don't necessarily agree that you've been cut out of the deal. . .yet.

At this point I would wait until tomorrow before doing anything, to see if either party contacts you. If not, on Tuesday I'd be on the phone with the homeowner to pin him down. For starters, he needs to be reminded that he has a signed lease agreement with you, and that isn't going away just because he cut another deal. But like I said above, I don't think you're being cut out. I see an anxious homeowner who wanted the security of cash in hand. Keep us posted.

What is the scheduled move in date with this tenant?

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That's ate up when a seller does this. You lose control and it pisses me off. Has the owner gone away back to where he has come from, or is he still in town? I would stay cool and friendly, but be quick on your feet and try and get in front of the t/b. Explain to the t/b that the seller contacted you about them getting the house and you are following up and you have some paper work that needs to be completed for their move-in and you will also need to collect the remainder $4K (cashiers or money order). Set a meeting with the t/b then contact the seller if he is in the area to meet. Sounds like from the seller he realizes he has messed up when he states "holy smokes." You may need to flex your muscle a bit to let the seller know you have the house under contract, but it sounds like he realizes his mess up. I would pass on the screening "for now" and go for the close as the seller has approved the t/b his way.

Start paddling to get in front of this one and hopefully the t/b has the $4K.

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Still no word.

 

Oh, for the record, that was me saying HOLY SMOKES.

 

He told me that he had his own lease agreement "if need be". Also, he mentioned "they will be on a lease agreement one way or the other come monday, I'll make sure of it. And, if you get them to sign yours, I'll just tear mine up".

 

He's definitely confused and here's what I think happened.

 

I think the tenant wasn't explained to about all of this so they just figured $7k to sign up with me or $3k to sign up with the homeowner. easy choice. So, I think the seller just signed them up on his lease and never even thought about the fact that he was already in an agreement with my company. I mentioned to him early on that it's non-exclusive although I don't think he even listened. Also, it's one thing if he SOLD his house before I could get it leased but this is a totally different situation.

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The seller cannot lease or sell the house when you have it under contract? Try calling the t/b tonight, they probably work during the day. Call the seller again find out what's up and let the seller know you are non-to-happy if this is how he does business.

 

Where do you think you messed up loosing control with the seller?

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