Investor-Focused Offers and Tenanted Properties

Price is one part of an investment offer. The agreement should also give you the information and access needed to evaluate the property, where the seller and market will permit it.

Potential conditions and review items

• · Financing and appraisal
• · Home inspection and specialist inspections
• · Insurance approval
• · Lawyer review and status certificate
• · Review of leases, deposits and rent records
• · Municipal-use and permit review
• · Fire or code review
• · Access for contractor estimates
• · Well, septic or environmental review where relevant
• · Vacant possession where contractually appropriate
• · Seller representations and warranties
• · Chattels, appliances and utility contracts
• · Closing adjustments

Before you sign

• · Know the maximum price supported by your analysis
• · Identify assumptions that are still unverified
• · Understand which conditions protect those assumptions
• · Confirm deposit amount and timing
• · Review closing date, tenant notices and access needs
• · Do not remove due diligence merely to make weak numbers appear competitive

Reviewing a tenanted property

Existing tenants can provide immediate income, but you need a complete picture of the tenancy, lawful rent, deposits, obligations and unresolved issues.

Verify, do not infer. Do not assume the advertised rent is collectible, lawful or current — reconcile leases, notices, deposits and actual payment records. Coordinate tenant communication through the seller and the parties' legal obligations, and avoid promising tenants anything about possession, rent or future terms before receiving legal advice.