Wholesaling With Tenant Occupied Home

Buying & Selling Real Estate
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Wholesaling With Tenant Occupied Home

Cameron Strong
New to Real Estate 路 Memphis, TN 路 Member since 2018 路 7 posts 路 5 votes

Is it a good idea to start my wholesale career off with a property that's currently occupied with tenants? Also how do I inspect the property to make a reasonable offer without interrupting the current renters? I have spoken with the home owner who is motived to sell quickly but I can not make an honest offer until I get help with this situation... Please help... Any info is greatly accepted 

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Jonathan GreeneBusiness Member
Real Estate Consultant 路 Madison, NJ 路 Member since 2016 路 6k+ posts 路 7k+ votes
6y

@John Thedford, you need to calm down and stop spewing your garbage in every forum. I am a former attorney, a licensed real estate agent in NJ. You quoted FL law. I am not in FL. I run an on-market real estate agent business and an off-market property acquisition business that discloses on all postcards that I have a real estate license. Wholesaling does not have to be done as a licensed agent. Sellers are permitted to sell their real estate however they please. Private sales are commonplace. You are targeting a percentage of wholesalers that do use bad tactics and illegal means to defraud homeowners, but there are many of us who know much more than you and practice our business in open and forthright ways to all parties involved.

You absolutely can send out emails about off-market properties. Do you think there is prohibition in the United States against privately marketing real estate? Sellers do not need a license to sell or post their home on Facebook. What about a friend of a seller who tries to help them by posting their FSBO listing? Whatever problems you have with wholesaling, you don't need to dump it into every forum like a psychopath who has been scorned by one deal too many. There are plenty of ethical wholesalers who aren't violating any laws by becoming a middle person for a sale.

What you are spazzing out about is private citizens acting as if they are real estate agents. As long as you clearly identify your role in the transaction, disclose the wholesale price and original price, and be very clear about how the transaction works off-market, you are not violating your requirements under state law for real estate. In some states, the regulations are different, but nothing can prevent ethical wholesaling.

You aren't paying attention in all of these forum blasts to who is talking, what their background is, and how they are responding. So do everyone a favor and stop. Enjoy your business however you want, but stop reverse trolling because you have an issue with wholesaling.

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  • Mark Miller
    Mobile, AL 路 Member since 2018 路 19 posts 路 2 votes
    6y

    @John Thedford, this might be off topic, but truthfully, you are correct is what wholesalers can't do, and licensed agents and brokers can.  Now though, wholesalers can, legally, sell the equitable interest in a property, and most real estate contracts include assignment.  A "good" wholesaler though, is only there to help people in a bad situation that can't sell their house in its as is condition.  So, yes, you can wholesale a property with tenants, I would not recommend it though, it requires a little bit more, and the end owner will need a new lease if I am not mistaken.

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  • John Thedford
    Real Estate Broker 路 Naples, FL 路 Member since 2013 路 9k+ posts 路 6k+ votes
    6y
    Originally posted by @Mark Miller:

    @John Thedford, this might be off topic, but truthfully, you are correct is what wholesalers can't do, and licensed agents and brokers can.  Now though, wholesalers can, legally, sell the equitable interest in a property, and most real estate contracts include assignment.  A "good" wholesaler though, is only there to help people in a bad situation that can't sell their house in its as is condition.  So, yes, you can wholesale a property with tenants, I would not recommend it though, it requires a little bit more, and the end owner will need a new lease if I am not mistaken.

    I agree. I have never seen a non licensee sell just a contract. Invariably they cross the line and violate brokerage laws. The worst part though is the damage I have seen done to sellers. Very few people if any care about that. 

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  • Ola Dantis
    Multifamily Syndicator 路 Houston, TX 路 Member since 2016 路 1k+ posts 路 2k+ votes
    6y

    Fascinating read... 

    Never thought I will read this debate! 

    馃嵖馃嵖馃嵖馃嵖馃嵖

    1Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant 路 Madison, NJ 路 Member since 2016 路 6k+ posts 路 7k+ votes
    6y

    To sum it up in regard to the assertions in this stream that all wholesalers are violating laws if they don't have a real estate license, you always should include language in your wholesale emails like this:

    "The Wholesaler Name is a principal party in a valid and assignable purchase and sales agreement, which allows The Wholesaler Name to purchase a property in City, State. The decision has been made to offer this purchase and sales agreement to another cash buyer so as to allow you the opportunity to buy this property. This is not for public distribution. Private communication only."

    Although I am a former attorney, this does not constitute legal advice.

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  • John Thedford
    Real Estate Broker 路 Naples, FL 路 Member since 2013 路 9k+ posts 路 6k+ votes
    6y
    Originally posted by @Jonathan Greene:

    To sum it up in regard to the assertions in this stream that all wholesalers are violating laws if they don't have a real estate license, you always should include language in your wholesale emails like this:

    "The Wholesaler Name is a principal party in a valid and assignable purchase and sales agreement, which allows The Wholesaler Name to purchase a property in City, State. The decision has been made to offer this purchase and sales agreement to another cash buyer so as to allow you the opportunity to buy this property. This is not for public distribution. Private communication only."

    Although I am a former attorney, this does not constitute legal advice.

    IF...IF they are not violating laws and nobody needs a license why not give up yours and lead by example.

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant 路 Madison, NJ 路 Member since 2016 路 6k+ posts 路 7k+ votes
    6y

    Give up my license? @John Thedford crawl back under that rock and stop harassing everyone on the site with your nuisance-based ideologies and conspiracy theories. I am trying to help people do things the right way. You are an online troll with a puny business who bases his daily success on how many people he can enlighten about scammers and such.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don鈥檛) by Gino Barbaro
    Zen and the Art of Real Estate Investing59 Reviews
    WebsiteView Page
    1Reply
  • John Thedford
    Real Estate Broker 路 Naples, FL 路 Member since 2013 路 9k+ posts 路 6k+ votes
    6y
    Originally posted by @Jonathan Greene:

    Give up my license? @John Thedford crawl back under that rock and stop harassing everyone on the site with your nuisance-based ideologies and conspiracy theories. I am trying to help people do things the right way. You are an online troll with a puny business who bases his daily success on how many people he can enlighten about scammers and such.

     Here we have people advocating that no license is needed to operate yet they won't give theirs up. Can't have it both ways! The argument changes to fit their needs. You either need a license or you don't. If not, save those pesky licensing fees!

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  • John Thedford
    Real Estate Broker 路 Naples, FL 路 Member since 2013 路 9k+ posts 路 6k+ votes
    6y
    Originally posted by @Jonathan Greene:

    No, you moron. Just because you say you must have a license and I say it's not necessary does not mean that every person who is a wholesaler has to give up their real estate license, if they have one, to prove a point to you. You are just some troll on the Internet who does what all trolls do - you make arguments in an echo chamber and then try to prove your own points with misplaced facts, lies, and hyperbole. Shut your pie hole and go back under your rock in Florida and stop wasting everyone's time in the forums when the majority of the people on the site are just trying to do it the right way.

    You are a rather umpleasant person! You cannot win an argument with facts.

    0Reply
  • DJ M.
    Realtor 路 Southeast Michigan 路 Member since 2017 路 232 posts 路 180 votes
    6y

    @John Thedford  you learn a lot about someone when they choose to attack the messenger, instead of the argument, eh?

    0Reply
  • John Thedford
    Real Estate Broker 路 Naples, FL 路 Member since 2013 路 9k+ posts 路 6k+ votes
    6y
    Originally posted by @DJ M.:

    @John Thedford  you learn a lot about someone when they choose to attack the messenger, instead of the argument, eh?

    Absolutely! They said no license needed and when I suggested they give theirs up they went nuts.

    1Reply
  • Sean Hill
    Specialist 路 Cincinnati, OH 路 Member since 2017 路 4 posts 路 4 votes
    6y

    @Cameron Strong...If it's legal and the profit is worth the effort...its a good flip, Tennant or not..Next, use the Seller of the property to get you in for inspection. He/She is motivated to sell, let them tell the renter what day and time you are coming..They will prep the property for showing themselves..See if you can get the renter talking during inspection. They will give you inside info onto the property and the owner alot of times.....Good Luck!

    1Reply
  • Renee Ren
    Real Estate Agent 路 Irvine, CA 路 Member since 2014 路 68 posts 路 54 votes
    6y

    @Cameron Strong Tell the owner you need to see the interior of the property or get the owner鈥檚 permission to contact the tenants. Most cases they鈥檒l allow you to enter the property. It is ok to wholesale the property with tenants if a deal is good enough. Just need to disclose to the end buyer. Put it under contract that you are going to assign it to another party. You can say that is your business partner who will buy the property. If you don鈥檛 want seller to find out you are going to wholesale the property then you do a double closing.

    1Reply
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