Wholesaling house by selling to the current tenant

Wholesaling house by selling to the current tenant

Rental Property Investor · Culver City, CA · Member since 2012 · 403 posts · 246 votes

I have a house I'm negotiating with the owner and just visited it today. The tenant showed me the house without the owner present. She and the owner do not like each other and are not communicating. The tenant expressed a desire to buy the house at a number higher than I'm talking with the owner. She wants to buy w/traditional financing though. 

What's the best way to structure this? I'd rather owner didn't know tenant is buying from me. Since tenant is buying w/traditional financing and not cash, do I have to buy it first and then sell it to her? Or is it possible to sell the contract to a buyer who is using traditional financing? 

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Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
9y

@Jason Carter  I looked it up.  All the lawyers say ask the title company you will use on the part of the transaction with traditional financing.  You should also be aware some mortgage companies will not allow a closing on the same day. 

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  • Investor · Orlando, FL · Member since 2016 · 1k+ posts · 780 votes
    9y

    The best way is to buy it, continue to rent it to them until they can get a new loan.

  • Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    @Jason Carter  I looked it up.  All the lawyers say ask the title company you will use on the part of the transaction with traditional financing.  You should also be aware some mortgage companies will not allow a closing on the same day. 

  • Rental Property Investor · Culver City, CA · Member since 2012 · 403 posts · 246 votes
    9y

    @Account Closed thanks! To clarify ask the title company on the b-c side how to structure the deal? 

  • Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    @Jason Carter Exactly.

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