Posted by Paul Welborn,Jr. on March 21, 2005 at 19:08:13:
These arrangements are nothing but trouble. An example of becoming too chummy with a tenant. In short, I would have done it the same way.
Can we prevent eviction? - Posted by Live’nLearn
Posted by Live’nLearn on March 21, 2005 at 18:39:24:
A friend, a property seller we know, had an empty investment property in Florida. We provided the property seller various services both professional and to improve the property in lieu of payment for several months because we were cash poor. We know we were foolish but it was a verbal arrangement because we trusted. Now we’re ready to do a lease purchase with our services and improvements for down payment. The “ex-friend” wants to force us into signing just a lease agreement with false statements to get a bank loan on his primary residence. On top of the fraudulent lease, the most disturbing is he wants to make us sign a note at 8% interest saying he “loaned” us the funds during the months we were providing services and doing improvements to show his bank cash flow even for months we didn’t live there. If we don’t sign he’ll evict us or sell the property out from under us. What can we do?
Re: Can we prevent eviction? - Posted by Kimberly Richardson
Posted by Kimberly Richardson on April 25, 2005 at 13:50:10:
I have missed rental payments because I was sick with a brain tumor. I can maintain my rent now but I having trouble catching up on past payments I missed. Is their help for me?
Re: Can we prevent eviction? - Posted by JohnBoy
Posted by JohnBoy on March 21, 2005 at 22:37:18:
I take it you never sign any type of lease prior to moving in and you just moved in with a verbal agreement, correct?
First of all, signing a note saying he loaned you money isn’t going to do anything for him as far as the lender is concerned because he won’t be able to show you made any payments. So that kills any proof of him collecting cash flow.
Signing just a lease could be OK, but have him give you a seperate option as well. Then all he needs to do is show the lease and not show the option. The lease alone would show he is getting cash flow! He doesn’t need a note at 8% for that!
Since everything to this point was all verbal then he has nothing to show proof that you ever agreed to do any improvements or pay any rent. So you could say he just let you move in in exchange for just paying the utilities since he claimed he couldn’t rent the place because it needed to many improvements! So now go ahead and file eviction! Meanwhile, I’ll be tearing out all the improvements I made while you’re waiting for the eviction to go through! 
I wouldn’t threaten this until after I knew for sure he wasn’t going to work something out. But if it were me I would be glad to sign a lease to give him what he wants as long as he was living up to his promise by giving me the option to go along with it. The lease and option can be seperate agreements where he can show the bank the lease agreement to show he has cash flow coming in to support the loan he is wanting to get.
I wouldn’t agree to a lease that states the rent is more than what you are to really pay. Keep that the same. Get a seperate option. Then he has everything he needs and you get what you need.
If he doesn’t agree to something along those lines then don’t sign anything. Especially a note. At this point everything is he said, she said, and verbal agreements pertaining to real estate are not enforceable. Most states where there is no written lease it is considered a month to month and all that is needed is to serve a 30 day notice to vacate. Then after the 30 days the eviction can be filed if you fail to vacate the property. But at the same time, since there never was anything in writing then there is nothing to prove there was an agreement to fix up the property in lieu of paying rent. So I could take all my improvements apart and give it back in the same condition it was in when I moved in!
So go ahead and evict my friend! You don’t have too, just serve me my 30 days notice and I’ll be gone by the end of the 30 days, along with all my improvements I made! I’ll be gone and you’ll get your property back just the way it was before I moved in!