Investors often reach a point where they need to liquidate older assets to move into new opportunities. For Gurj, the owner of a rental property on Pierson St in Phoenix, AZ, that time had come.
After years of holding two rental properties, it was time to cash out on the equity and redirect the funds into more promising ventures. But the properties had tenants, and Gurj didn’t want to deal with displacing them.
That’s where my company, AZ Home Seller Solutions, stepped in, providing a fast, tenant-friendly solution that worked for everyone.
The Seller's Challenge:
Recapitalizing Without Disturbing Tenants
Gurj owned two rental properties in the Phoenix area, both of which had seen a substantial increase in equity over the years. His initial plan was to hold these properties long-term, but changing market conditions and increased headaches from managing tenants made Gurj reconsider.
He wanted to sell the properties, recapitalize his funds, and move on to new investments—but he didn’t want to deal with repairs, evictions, or the stress of displacing the tenants before their lease terms were up.
"We had held these properties for years, but it was time to move on. Rafael and his team made it possible for us to sell without displacing our tenants or worrying about repairs."
Gurj Johal
Burned-Out Landlord
Gurj also faced growing frustrations with his tenants, who had started causing issues, despite having a property management company in place. With equity at a high point and stress levels growing, he decided it was time to make a change. He received one of my direct mail promotions, and after over a year of follow-up, Gurj was finally ready to make a move.
The Tenant Impact: Before the Sale
These photos reveal the property’s rough condition after years of tenancy. They highlight the challenges Gurj faced in preparing for a sale and the opportunity for transformation through a straightforward transaction.
Our Approach:
Flexibility and a Win-Win Solution
Gurj’s main goal was to sell the property quickly, without disturbing the tenant’s lease. My acquisition manager, Paul, visited the property and assessed its condition. After discussing all the details with Gurj, we made an offer of $110,000, contingent on our inspection.
To make things as smooth as possible for Gurj, we also agreed to pay all buyer-side closing costs and purchased the property as-is, with no repairs or credits requested.
We drafted contracts that were flexible, allowing the tenant to stay for the remainder of their lease. Once all contracts were executed, our transaction coordinator sent them to the title company to set up escrow and begin the preliminary title report.
My disposition manager then launched a campaign to find the best buyer for the property. Since I already had a strategic buyer partner interested, we were able to assign the contract quickly and move towards closing.
Step 1.
Discovery call to understand Gurj's needs and goals
Step 2.
Property walkthrough and initial offer made
Step 3.
Drafted and executed purchase contracts, contingent on inspection
Step 4.
Sent contracts to title company and began escrow process
Step 5.
Marketed the property and identified a strategic investor buyer
Step 6.
Assigned the contract and finalized the transaction
The Contract That Simplified It All
This as-is purchase contract with no contingencies set the stage for a fast and stress-free sale. It reflects the transparency and simplicity of our approach to help Gurj sell quickly and confidently.
The Results That Made the Difference
We agreed on an initial purchase price of $110,000 with Gurj. After securing my strategic buyer partner, we executed an assignment agreement for $118,000. Since I had worked with this buyer before, I was confident in his ability to close quickly and without any issues.
The strategic buyer initially intended to rehab the property himself but later assigned the contract to another buyer, who planned to complete the repairs and resell. The final buyer closed the transaction in just ten days after signing contracts and depositing their earnest money.
The entire process took just a couple of weeks, from drafting the contracts to closing, allowing Gurj to achieve his goal of recapitalizing without the headaches of managing tenant transitions or repairs.
$110K Purchase Price: A Strategic Start
Gurj agreed on a purchase price of $110,000 after a thorough property assessment, setting the foundation for a successful deal.
$118K Assignment: Maximizing the Deal
The contract was strategically assigned to a buyer for $118,000, ensuring added value for all parties involved.
10-Day Close: Speedy and Efficient
The transaction closed in just 10 days after contract signing, providing Gurj with a quick and efficient resolution.
Sealing the Deal with Financial Clarity
The closing settlement statement and proceeds check confirm the successful transaction, providing Gurj with immediate financial relief and a clear breakdown of the sale’s results.
“Patience and persistence—Rafael’s team got the job done!”
Rafael’s team stayed in touch with us over several months until we were ready to sell our rental property. They provided a cash offer, took the property as-is, and handled the closing quickly despite repair issues. We’re grateful for their patience, persistence, and the seamless sale experience.
Top Tips for Selling Rental Properties with Tenants
Selling a rental property with tenants in place can be challenging, but there are ways to make the process smoother. Here are some key takeaways from Gurj’s case that might help others in similar situations:
top tips for
sales success
Be Flexible with Tenants
Allowing tenants to stay until their lease ends can make the sale more attractive to certain buyers and help maintain positive relationships.
Work with a Team Experienced in Tenant-Friendly Sales
Navigating tenant leases and maintaining a positive experience for all parties can be complex—having a team that knows how to handle these situations is crucial.
Communicate Openly with Tenants
Keeping tenants informed throughout the sales process can help avoid misunderstandings and ensure a smooth transition, making the sale more appealing to potential buyers.
Lessons Learned: The Value of Follow-Up and Flexibility
![Lessons Learned Icon [v3]](https://rafaelcarrasquillo.com/storage/2024/12/Lessons-Learned-Icon-v3.png "Lessons Learned Icon [v3]"){kind=icon}
One of the biggest lessons from this case was the importance of follow-up. It took over a year of consistent outreach before Gurj was ready to sell, and without that persistence, this opportunity would have been missed.
Additionally, flexibility was key—both in terms of allowing the tenant to stay and in structuring the deal to work for everyone involved.
This experience also emphasized the value of having a trusted buyer network. By assigning the contract to a reliable investor, we were able to close quickly and deliver on our promises to Gurj.
Need Help Selling Your Rental Property?
Selling a rental property can be complicated, especially when tenants are involved. If you're looking for a solution that works for both you and your tenants, my team and I are here to help. We’ll handle everything from negotiations to closing, making the process as smooth as possible.