Lately, I’ve been getting a lot of questions about occupied properties — specifically, whether we fund
them and whether we recommend buying them. The short answer: – Do we fund them? Yes. – Do we
recommend buying them? Sometimes… and with caution. We’re not just lenders — we do our own
deals, too. Right now, we’re working on three projects we purchased off-market, all of them occupied,
and each with its own set of challenges. These deals can work, but they’re not as straightforward as
people think.
The Reality of Buying Occupied Properties
Occupied properties can be a goldmine — or a headache. Here’s what you need to factor in before you
sign the contract: 1. Eviction Timelines – Some evictions wrap up quickly. Other times, you’re looking at
12+ months before you gain possession. – In our experience, most fall somewhere in the 3–9 month
range. 2. Extra Costs – Moving or “walking” money to incentivize the occupant to leave. – Attorney fees
for eviction. – Extended holding costs while you wait for possession. 3. Complications With Protected
Classes – If the occupant is elderly, disabled, or part of a protected class, expect a more complex and
potentially more expensive process.
The Eviction Process: Why Speed Matters
A lot of people try to save money by delaying eviction or attempting a handshake deal. Don’t do it. – File
the eviction immediately. – Use it as leverage to negotiate a smooth transition. – Even if you want to
work with the occupant, having the legal process in motion protects your timeline. Sometimes
occupants will cooperate, especially if they have overages coming back to them (which can make
negotiation easier). Other times, they’ll dig in, stop answering calls, and make the process difficult.
Bottom Line
Buying occupied properties can be profitable — but buyer beware. It’s not a beginner’s play, and it’s
rarely as easy as the “quick flip” stories you hear. Plan for delays, budget for extra costs, hire a solid
eviction attorney, and go in with eyes wide open.