Buying a wholesale property with owners still living in property

Mobile, Alabama
Buying & Selling Real Estate
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Buying a wholesale property with owners still living in property

Angela Revere
Member since 2026 · 12 posts · 3 votes

I have a property under contract with a wholesaler.  The owners are still living in the property and we have had trouble getting contractors in to give us estimates.  That is finally finished, but there are no signs of packing when we have been in the property and there is a LOT of stuff!!  It is stated in the contract that we take ownership at closing.  What happens if they are not out by the closing date?

Thank you!!!

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Matt DingusBusiness Member
Real Estate Agent · Pittsburgh, PA · Member since 2020 · 82 posts · 76 votes
3mo

Hey Angela - I've been in this situation before with client's purchases and my own. I had one that I was buying off-market "vacant at close" that I delayed the closing about 4 times until the tenant was gone before I would close and take ownership. I did this because I knew the potential headaches if the tenant (or seller) was still there and refused to leave - then it becomes my problem. You have all the leverage as the buyer for the wholesaler in this case to take care of getting the property vacant - so make it their responsibility. I would just be sure to do a final walk through before you sign at closing that the owner has in fact vacated the property. 

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  • Matt DingusBusiness Member
    Real Estate Agent · Pittsburgh, PA · Member since 2020 · 82 posts · 76 votes
    3mo

    Hey Angela - I've been in this situation before with client's purchases and my own. I had one that I was buying off-market "vacant at close" that I delayed the closing about 4 times until the tenant was gone before I would close and take ownership. I did this because I knew the potential headaches if the tenant (or seller) was still there and refused to leave - then it becomes my problem. You have all the leverage as the buyer for the wholesaler in this case to take care of getting the property vacant - so make it their responsibility. I would just be sure to do a final walk through before you sign at closing that the owner has in fact vacated the property. 

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    • Angela Revere
      OP
      Member since 2026 · 12 posts · 3 votes
      3mo

      @Matt Dingus Thank you!!!  If I were to take ownership while they were still there, do you have to go through the eviction process like with renters?

      1Reply
    • Matt Dingus
      Member since 2022 · 1 post · 1 vote
      3mo
      Quote from @Angela Revere:

      @Matt Dingus Thank you!!!  If I were to take ownership while they were still there, do you have to go through the eviction process like with renters?

      Yeah, more of an attorney question, but I would expect the proper way at that point is you’d have to go through an eviction process if they’re refusing to leave. I wouldn’t even leave yourself exposed to that possibility 
      1Reply
    • Angela Revere
      OP
      Member since 2026 · 12 posts · 3 votes
      3mo

      @Matt Dingus Thank you so much for the help. This is my first deal!

      0Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    3mo

    Yes, unless your state has some kind of squatter's mechanism that the police are willing to enforce, if you close and they are still there then they become unpaid tenants and you will need to go through the eviction process. I would be very leery of closing on this property without it being empty, and I would not close without title insurance. You would not want to be the victim of a scam, IE the owners don't even know this house is being sold. There are some sketchy people out there especially in the wholesaling world. 

    I have bought a lot of houses and I will not close on a house that still has people in it. I want to pick my own tenants. 

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    • Angela Revere
      OP
      Member since 2026 · 12 posts · 3 votes
      3mo

      @JD Martin great advice. Thank you so much!!!

      0Reply
    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      3mo
      Quote from @Angela Revere:

      @JD Martin great advice. Thank you so much!!!

      What's their reason that they haven't moved out?
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    • Angela Revere
      OP
      Member since 2026 · 12 posts · 3 votes
      3mo

      @Ken M. We are buying from a wholesaler, which I didn't know until yesterday! It was listed by the wholesale company on the MLS. They did say they looked at an apartment yesterday, but without having a place locked down and with all their stuff and no packing, there is no way they are going to be out by closing. I think they want to move, but I'm not sure what the wholesaler is telling them. I don't feel like there is any urgency and I don't want to end up with a tenant. We are flipping this one.

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    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      3mo
      Quote from @Angela Revere:

      @Ken M. We are buying from a wholesaler, which I didn't know until yesterday! It was listed by the wholesale company on the MLS. They did say they looked at an apartment yesterday, but without having a place locked down and with all their stuff and no packing, there is no way they are going to be out by closing. I think they want to move, but I'm not sure what the wholesaler is telling them. I don't feel like there is any urgency and I don't want to end up with a tenant. We are flipping this one.

      I would definitely have a conversation with the sellers and find out what they believe the wholesaler has told them. You need to know what the seller's plans and capabilities are. It should also be in escrow at this point, get a copy of the title report so you aren't surprised by other problems. Wholesalers typically ignore that one.

      Where we are in Arizona, you now have to disclose that it's a wholesale so these items can be addressed. You wouldn't be able to list on the MLS unless it was a personally owned property and you went through a service or unless it was being sold by an agent.

      It seems very odd to have a wholesaler list on the MLS. That's just not legal everywhere, nor is it recommended. 
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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    3mo
    Quote from @Angela Revere:

    I have a property under contract with a wholesaler.  The owners are still living in the property and we have had trouble getting contractors in to give us estimates.  That is finally finished, but there are no signs of packing when we have been in the property and there is a LOT of stuff!!  It is stated in the contract that we take ownership at closing.  What happens if they are not out by the closing date?

    Thank you!!!


     Two options:

    1) Stick to the contract and delay closing until vacant.

    2) Close on time, but ask for a discount. The discount should equal your best guess at the cost and carrying costs to evict occupants.
    - You may want to contact the occupants to ask them what they want to do. Maybe they want to stay and can afford to pay decent rent? Just be sure to screen them! Or they may accept a Cash-for-Keys amount lower than the discount you got.

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  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    3mo
    Quote from @Angela Revere:

    I have a property under contract with a wholesaler.  The owners are still living in the property and we have had trouble getting contractors in to give us estimates.  That is finally finished, but there are no signs of packing when we have been in the property and there is a LOT of stuff!!  It is stated in the contract that we take ownership at closing.  What happens if they are not out by the closing date?

    Thank you!!!


    The sentence that stood out to me was, "I don't want to end up with a tenant."

    I learned that lesson the hard way on an early purchase. The numbers worked, the seller promised they were moving, and closing got pushed back a couple times because they "just needed another week."

    I finally closed anyway.

    The property became mine. The problem became mine too.

    What I thought would be a quick cleanout turned into months of delays, legal costs, and carrying expenses. The deal still worked eventually, but it tied up far more time and cash than I expected.

    If this is a flip and they're not packed, don't have another place secured, and you're already seeing signs that the timeline may not be realistic, I'd be far more focused on possession than the closing date.

    What would make you comfortable that they're actually moving versus just hoping they'll be out by closing?

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  • Angela Revere
    OP
    Member since 2026 · 12 posts · 3 votes
    3mo

    Well the house is in pretty bad shape, so I feel like they want to move. They have been looking at apartments, but true I can't be sure!

    0Reply
    • Jules Aton
      MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
      2mo
      Quote from @Angela Revere:

      Well the house is in pretty bad shape, so I feel like they want to move. They have been looking at apartments, but true I can't be sure!


       Please don't think that because the house is in rough shape that means they want to leave. This is how they live so it may look bad to you but it is their home. I agree with those who say no way would I close until it was vacant. 

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  • Eric M.
    Member since 2023 · 34 posts · 13 votes
    2mo

    I just dealt with this exact issue. Around here the wholesaler often closes on the deal before they market the property. Find out who actually owns the property, the occupant or the wholesaler? Also find out if the wholesaler did a seller holdback so the current/previous owners don't get completely paid out until they have vacated. This sounds like a slightly complicated first deal, which means you are going to learn a lot!

    0Reply
    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      2mo
      Quote from @Eric M.:

      I just dealt with this exact issue. Around here the wholesaler often closes on the deal before they market the property. Find out who actually owns the property, the occupant or the wholesaler? Also find out if the wholesaler did a seller holdback so the current/previous owners don't get completely paid out until they have vacated. This sounds like a slightly complicated first deal, which means you are going to learn a lot!

      What you seem to be describing is a "double close". Perfectly legal in all states. It includes two closes and two title reports so it costs a little more, but much more safe for all invloved. 
      1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2mo

    unless your getting a deal that is too good to pass up ( and highly unlikely if its through a wholesaler who has already not divulged the situation) you could find your self in a very expensive mess.. I used to buy court house steps that were occupied but after so many evictions and such I stopped.. house HAS to be vacant at close no exceptions for me personally.

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  • Jason Roberts
    Real Estate Consultant · Usa · Member since 2024 · 27 posts · 9 votes
    2mo

    NEVER!!!  And if you do you better structure it the right way.  Message me if you need help.  

    0Reply
  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    2mo
    Quote from @Angela Revere:

    I have a property under contract with a wholesaler.  The owners are still living in the property and we have had trouble getting contractors in to give us estimates.  That is finally finished, but there are no signs of packing when we have been in the property and there is a LOT of stuff!!  It is stated in the contract that we take ownership at closing.  What happens if they are not out by the closing date?

    Thank you!!!

    @Angela Revere
    That's definitely something to address before closing. Your purchase agreement, any occupancy provisions, and your title company or attorney can help clarify your options if the sellers haven't vacated on time. Is this intended to be a flip or a long-term rental once you take ownership?

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  • Carson Nordmann
    Member since 2026 · 119 posts · 44 votes
    2mo

    The contract language matters here. 'Takes ownership at closing' doesn't automatically mean vacant possession unless it explicitly says so. Worth having a real estate attorney review the contract before you close, specifically to confirm whether vacant possession is a condition or just an assumption baked in informally.

    0Reply
  • Eric M.
    Member since 2023 · 34 posts · 13 votes
    2mo

    Did you put down a non-refundable deposit with the wholesaler?

    0Reply
  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    2mo

    Hi Angela,

    I'd be working closely with the sellers now to make sure everyone is on the same page before closing. If they're not out by the agreed closing date, it could delay the transaction or create issues with your end buyer, depending on the contract.

    I'd also encourage your buyer to do a final walkthrough right before closing so there aren't any surprises. It's much easier to address an occupancy issue before the deal closes than after.

    Hope everything goes smoothly. My DMs are always open if you want to connect!

    0Reply
  • Angela Revere
    OP
    Member since 2026 · 12 posts · 3 votes
    2mo
    Just an update on this - the owners did get out and we were able to close only a few days late!! They did leave behind an unbelievable amount of stuff, but excited to get started.
    0Reply
  • Alan F.
    Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
    2mo
    Quote from @Angela Revere:

    I have a property under contract with a wholesaler.  The owners are still living in the property and we have had trouble getting contractors in to give us estimates.  That is finally finished, but there are no signs of packing when we have been in the property and there is a LOT of stuff!!  It is stated in the contract that we take ownership at closing.  What happens if they are not out by the closing date?

    Thank you!!!


     As J.D. mentioned, local laws are the important part. Personally I would never buy a property unless vacant.

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