How to wholesale cash flowing properties ???

How to wholesale cash flowing properties ???

Wholesaler · Bowling Green, OH · Member since 2015 · 7 posts · 1 vote

Hey Guys,

i was recently contacted by a lady who has several rental properties in the PRP/Vally station area and is looking to get out of the game after 30 years. I checked out a couple of the properties and here is the situation. They are all in good condition needing minor updating and no actual repairs ( $5000-$10,000 max) all properties have long term tenants that are paying $800-$900 a month. My questions are 

1.what is the best way to try and wholesale these deals ? The seller is only asking 65% of ARV which is little high for someone to buy to flip.

2. Is the price to high for someone to purchase and keep the tenants for the cash flow?

3. How do i find a cash buyer interested in keeping a property that is already cash flowing ? my buyers list is almost all rehabbers but i don't want to pass on this deal. 

the seller also has 4 apartment buildings that are cash flowing she would like to sell. also no owner financing i already tried :(

any suggestions ???

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  • Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
    9y

    Why would tenants change anything? You wholesale it like you would anything else. The only difference is your potential buyers will probably want copies of the leases or tenant estoppel letters.  

    Or was this a clever sales pitch? 

  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    9y
    Originally posted by @Nick C.:

    The only difference is your potential buyers will probably want copies of the leases or tenant estoppel letters.


     Yes an savvy investor needs these BUT would never hand them over to a wholesaler.  These documents are exchanged ONLY after the Offer to Purchase has been accepted.

    Personally, I sure didn't need a wholesaler when I got a bidding war within one week of the listing.

  • Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
    9y

    Wholesalers by definition should have an accepted Offer to Purchase, since that's what they're offering for sale, the contract. Without an accepted Offer to Purchase there's nothing to wholesale. 

    Wholesalers should be marketing to find distressed sellers, not savvy investors. Getting a lease should be easy. 

  • Wholesaler · Bowling Green, OH · Member since 2015 · 7 posts · 1 vote
    9y

    I was trying to figure out the best strategy to capitalize on the situation the seller has 120 homes plus 4 apartment buildings and is looking to sell 60 of the homes and the apartment buildings. 

  • Louisville, KY · Member since 2014 · 60 posts · 3 votes
    9y

    Is 65% too high to buy and flip?  I thought 70% was the rule...

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