Selling a house the owner wont give access to!

Wholesaling
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Selling a house the owner wont give access to!

Jordan Schneider
Wholesaler · Merrick NY & Lexington, KY · Member since 2016 · 67 posts · 22 votes

Looking for advice!

Wholesaler out of Kentucky.  I've got 4 properties under contract with the same seller.  I explained to the seller what we do and how our company does business.  I sent my runner over to take pictures of all 4 properties and have interested buyers.  Two properties we've got assignment contracts signed but the seller wont let us get back in to show our investor.  He "doesn't want to scare off his tenants if the deal falls through." 

Side note - he'd be better off if his tenants were scared off since they are paying far below market rent!

This seller has many more properties to sell off in time and would like to keep the relationship going but once I tell perspective investors that they cannot access the properties they lose interest.  Clearly do not want to drop the listings but not sure how to handle this.

Thanks BP Community!

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JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
2y

Well that's pretty tough. I know that myself, as a buyer, if I cannot walk the property then I am either going to pass or offer far less money to account for what it is I may not be able to see. It sounds like your seller is trying to have it both ways. If you rent out property and want to sell, you need to just cut bait and sell, and it's obnoxious not to let your tenants know you are going to be selling. 

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    2y

    Well that's pretty tough. I know that myself, as a buyer, if I cannot walk the property then I am either going to pass or offer far less money to account for what it is I may not be able to see. It sounds like your seller is trying to have it both ways. If you rent out property and want to sell, you need to just cut bait and sell, and it's obnoxious not to let your tenants know you are going to be selling. 

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  • Jordan Schneider
    OP
    Wholesaler · Merrick NY & Lexington, KY · Member since 2016 · 67 posts · 22 votes
    2y
    Couldn't agree more JD. Thanks.  He is nervous he may scare the tenants which to an extent I understand, but all his tenants are paying far less than market rent as it is. He may be better off scaring tenants away!
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  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    2y

    I'd offer to buy the tenants dinner and a movie on his behalf. Make it a win/win- he gets to show the tenants some appreciation and kindness while you get to walk through your end buyers. 

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  • David Ramirez
    Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
    2y

    Hey @Jordan Schneider, 

    We had a similar issue in the past because we were not setting expectations correctly from the beginning. Your acquisition manager should paint a picture of how it will look after you go under-contract, mentioning that you'll need to send an inspector, contractors, and/or partners, and that it usually takes 2 or 3 visits. We make sure to do it before going under contract and right after we go under-contract when TC takes over. 

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  • Jordan Schneider
    OP
    Wholesaler · Merrick NY & Lexington, KY · Member since 2016 · 67 posts · 22 votes
    2y

    @David RamirezI did set expectations and let him know our entire process. He played dumb, telling me he told me from the get go that the initial inspection was all we were getting.
    I would have never taken the deal if that were the case!
    Were you able to close on that contract without being able to get back into the property?

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  • Lynn McGeein
    Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
    2y

    @Jordan Schneider it says you have assignment contracts on 2 of them, so don’t they spell out what your right is to access? Most of the wholesale offers I’ve received state clearly they want it fully assignable (vs seller approval to assign) and mode of access or specific procedures for access. If your contract doesn’t state terms for additional access, then I understand his concern, maybe ask if you can video the interior, although most tenants won’t want that. If it does have access clearly stated, then ask him to honor those terms.

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