Can I start light rehab work like paint etc before closing

Question

I have signed contract for SFR on a vacant property. Owner does not live in house and it's currently empty. Purchase and sale is signed. I have to only wait for bank to complete the closing formalities, but I am confident that closing will go smoothly (my DTI, closing funds and property purchased 15% below market - all positive points). My question is is there a proper and safe way to utilize this wait period and start a paint work before closing. This will allow me to start renting it immediately after closing. I understand in the worst case I might lose $$ spent on paint rehab. But is this something investors do?

Richard F. · Answer

If I had a dollar for every time I heard that!

Mike Dymski · Answer

Can't hurt to ask but most prudent sellers would not allow it (all risk, no benefit).

Rick Albert · Answer

It's a tough one.

I've had investors ask if they can get started before closing and my seller said no. Too much liability if someone were to get hurt.

On the flip side I had a vacant listing where buyers wanted to move stuff in on the day we closed but before recording. We made sure that the Sellers were added to the insurance policy from the movers and luckily it went fine.

My recommendation is to wait because it can get complicated on how to make sure everyone is protected.

Brian Liscio · Answer

@Kailas Tare

I did! The seller had no problem with it. The risk on my end from my attorney was only if the seller backs out of the sale. The simple ask; got me months ahead of schedule. My thinking is the seller has more to risk if someone gets hurt.

Jeremy Horton · Answer

What does closing take - about a month. Inspection and DD - a week. So you are gaining 2-3 weeks at best assuming contractor availability.

Seems like more risk vs reward. On the reward side, you gain what 2-3 weeks. This is a drop in the bucket. On the risk side...what can possibly go wrong? A lot more to lose than 2-3 weeks of rehab time.

I typically use the closing period to call, plan and schedule contractors (and make sure to have good backups). This way when you actually do close, boom you're in the next day or the same day. Don't have to worry about insurance, floods, fires, deal falling through for whatever reason, or getting hung up somehow, it's a lot less to risk and a lot less "messy" to just wait 2-3 weeks in my opinion.

That being said - If I was a seller there's no chance I'd allow it

Eliott Elias · Answer

Don't touch the property before closing. You're counting your eggs before they hatch, be patient and wait.

Patricia Steiner · Answer

NOOOOOOO. First, you don't have the legal right to alter the property since you don't own it and you haven't even met all the closing contingencies yet since a Loan Commitment has not been issued.  And, if something goes wrong with your financing and/or something happens at the property, the seller could claim that you damaged his property, failed to close, and make a monetary demand - or even charge you legally with trespass/more. Vacant - doesn't equal permission to access; the neighbors call the police everyday as vacant properties really are a nuisance.  Never happens?  This and more happens every single day.  Never put yourself in a situation where some crazy idiot can put you in jeopardy.  Waiting until you own the property before painting will be faster than having to clean-up some manufactured chaos that results from altering a property you don't own.

Congrats on your soon-to-be new property.  Hang tight to the close...it's worth the wait.

Bud Gaffney · Answer

Be patient.

Bud Gaffney · Answer

No no no no no. Wait.

Can I start light rehab work like paint etc before closing

Most Popular Reply