The final frontier! A little Star Trek humor there. All joking aside, a necessary evil, a valuable tool, a grey area to many. Cash for Keys (aka relocation assistance, CFK, and a whole bunch of other acronyms I can’t keep up with. WHY IS THIS IMPORTANT, AND VALUABLE????? The property is worth more vacant, or the occupant is interrupting cash flow and/ or income.
What if you could buy a property at a discounted price because it was occupied? (selling REO properties occupied is a growing trend, check out Xome and others like it) Then…., shortly after, or in some cases even before you close, you get it vacant? The value goes up, and the property opens to a much larger buyer pool. This makes for a very cool, and often quick flip model.
The other end of the spectrum; You can’t collect rent, or maybe can’t start a rehab or sell a flip because of a tenant. EVICTION!
Now, there is a legal process involved with an eviction, then the actual lock out (ejectment). Equity Building Group is not a law firm, but we do have relationships with law offices that specialize in evictions. Cash for keys, is basically a negotiation resulting in an agreement between property owner and occupant where occupant leaves in a relatively short period of time, leaving the property “broom clean and free of debris” in exchange for a payment from the property owner.
Once a writ of possession is attained, an ejectment can be scheduled. These get screwed up often. The sheriff’s department is involved, and if the company performing the lock out doesn’t dot the “I’s”, and cross the “T’s”, a lot of these get canceled. I had one recently where the company providing the mover and locksmith (as is required), didn’t set up a storage facility in the same county as the lock out. (this took place in July) Because there was no proper storage facility in the proper county set up in the proper time frame given by the sheriff’s department, the sheriff canceled the lock out. The next lock out date the sheriff had available was in December. The writ of possession expired in September. This meant the property owner would have to go back to court, get a new writ, and re-schedule the lock out. It also meant the occupant could stay in the property, for free, at least until December.
The team at Equity Building Group has performed as many successful lock outs, and successful CFK’s as anyone in the business. Explore this method to increase value, or just to get a property vacant as quickly and efficiently as possible. Use the team that will make these events smooth and successful every time. Equity Building Group!