The $47K Solar Debt That Made Us $86K

A daughter inherited a house with a $47,000 solar panel lien that killed the sale. The host's team bought it cheap, put the payoff in escrow, and contested the lien instead of paying it. They ended up with an $86,000 return.
Chapters
Why would a seller sell at such a discount where we could make $86,000, right? That's probably what a lot of people asking that question. So let's talk about the seller situation. The seller had inherited this property from her mom that had died, right? And the mom was in bankruptcy, right? Like she wasn't making her paying her bills and then she died. So the house had solar panels on it and there was a solar lien on the property and the daughter was trying to sell the house for $47K. Oh, the lien was for $47K. The people that sold her solar kind of screwed her mom over because $47,000 for solar, you kidding me? Seems like a lot, but that's a lot of money. It's not, I don't know. So anyway, the daughter was trying to sell the property and she was having no luck selling it because their lien was on there and investors weren't trying to buy it, you know, the lien on there. Yeah, she tried selling to Open Door, couldn't. Yeah, tried other investors. Open Door said to her that she needs to pay off the lien and then they'll buy it. So she had to come up with $47,000. Yeah, and she didn't want to put it on the MLS because, um, you know, I'm assuming this the same issues would happen. So, you know, like a retail buyer is not going to be able to pay that off, right? So she was struggling to sell with the solar lien, and you know, we got the lead and we talked to her, and basically, you know, she was wanting way too much in the beginning. But after talking to her and telling her, you know, negotiating, we were able to negotiate it down to a price that even if we paid off the solar, we would have made probably $37,000. Yeah, like $40,000. So when we agreed to buy the house from her, we said, look, we're not going to pay off the solar lien right now. We're going to leave it You know, we're gonna leave the money in escrow to pay it. And, you know, we're gonna try and fight it and get rid of it. But— She also wanted money, like, really fast.
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