I'm currently juggling 3 escrows. The paperwork seems never-ending, but it's a wonderful problem to have. One escrow is for a property that I am selling in West Hills. The other 2 escrows are for houses I am purchasing in Los Angles and in Carson. I had a revelation this morning that all 3 of these properties have something in common - None of them were owner occupied when the seller decided to sell to me. All of them had family or "friends" living in the property. The motivation as to why the homeowners sold to me varied though. One had a falling out with the person that was living there (hence my quotation marks around the word "friends"). The others simply needed the money and/or were ready to move on.
While 3 at once is uncommon for me, I do purchase many properties with this living situation. Selling a property with tenants to an investor is much simpler than putting it on the market. Here are few reasons why:
- There aren't any repairs to coordinate around the tenant's schedule.
- There's no need to clean up the property for marketing photos, real estate agent showings, etc.
- Tenants don't need to leave every weekend for open houses.
- Investors can be flexible on closing dates to allow the tenants time to find a new place.
- The list goes on...
Thankfully, the properties that I'm in escrow to purchase all have good owner/tenant relationships. This helps the escrow process run smoothly. I've dealt with many properties in which the relationships were not so pleasant. You can read about a couple of them here: