Wholesale a Friend's House

3 Replies

I have a friend here in Austin who owns a house that her parents bought her when she was in college and now she rents it out. The house is in Atlanta. Whenever she mentions it, it sounds like she really doesn't like dealing with it. Since joining BP and reading the blogs and forums I've started to wonder if she'd rather be rid of it, but just doesn't feel like going through the hassle of finding an agent, listing, and negotiating with buyers. So I had the idea that maybe, if I'm right, I could use her house to get my feet wet a little with wholesaling. I'm not sure that I want to be a wholesaler per se, but if this ends up being an opportunity I definitely want to take it.

My question is, how do I talk to her about wholesaling her house? I want to be ethical in general, but even more so because she's my friend. I want to be honest and up front about what I'm doing. Is there some benefit to her in letting me do this, or would it really only benefit me, and she'd be better off just listing with an agent? If that's the case, I'm happy to tell her that. I don't want to try to solve a problem that doesn't exist.

Thanks!

The benefits of her going with a cashbuyer is you can close quick.   It seems like she may not have that urgency or motivation (not a motivated seller).  

Run the idea with her anyways. Tell her you have a network of cash buyers that will buy in as-is condition.   If that is enough incentive, then she will be interested.   If not, then maybe a traditional retail sale with a realtor would be for her.

Alex my thoughts are friends and business don't mix.  Business demands that you make a profit in order to stay in business.  That means that any end buyer, that you would sell to,  would require a price low enough that they determined that it was worth their time and the risk.  You would also want to make a profit so that would mean your friend would have to price the property low enough to make that happen.  If the property is in retail condition she could list it and sell it in the retail market.  if the property is not salable in its current condition and she really wants to git rid of it then you might be doing her a favor. 

I am with James. Don't profit on friends unless you are tired of having friends. Also, it sounds like you are not actually in Atlanta. I think the best thing you could do is hook her up with an agent in Atlanta that gives discounted rates. Maybe there is one here on BP?