Wholesale Deal Advice Needed

9 Replies

Hello BP'ers. I have a wholesale deal in the works that I plan to assign. The property is a SFR 3-1 that's currently occupied by a renter. The renters current lease is up at the end of July, but I plan to close this deal by the middle of May. The seller wants an occupancy addendum to protect his tenant's rights until the end of the lease. What's the best way to go about addressing this?

Thanks,

Wholesale the deal to a buy and hold investor. If the tenant has a good payment history than you should be able to find a buyer. I know a lot of buyers that would love to buy with a GOOD tenant in place.

Wholesale the deal to a buy and hold investor. If the tenant has a good payment history than you should be able to find a buyer. I know a lot of buyers that would love to buy with a GOOD tenant in place.

I agree. Wholesale to a Buy & Hold investor

Gents. Thanks for the response. I had planned to market it to a buy and hold investor. Was just wondering if I should structure the assignment agreement any particular way. I was thinking as a minimum to attach an addendum indicating that the tenant will occupy the property until his lease expires in Jul 14.

@Marion Edwards

Check with your state / town landlord laws as well. In many states (and for sure the state of Vermont where I do business), the lease remains with the proeperty despite a change in ownership.

- Tom

I believe the tenancy is protected upon the sale transfer. I'd make sure the terms of your purchase agreement with the seller references the existence of the specific lease and that terms of the lease are part of sale. The assignment agreement references the purchase agreement, which is binding upon your buyer.

Thanks for all the feedback. Im starting to see the real complexities of wholesaling and need to have many business processes in place. I'm undeterred and will keep doing this until I get it right. It's great to have so many mentors in one place.

@Marion Edwards ,

I like your attitude and spirit of perseverance! I have no doubt that you will reach your investing goals.

Good luck and happy investing!

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