Wholesaling Property with Tenants?

4 Replies

There's a property I could get under contract for $70k. The numbers on it aren't bad (ARV $225k/Rehab $60k), and I could do a wholesale on it.

There's just one thing keeping me from sending my offer.. It's being rented and the tenant has a lease until September, 2020.

I haven't dealt with wholesaling properties that have tenants in them. So, i'm wondering.. What should I do in this scenario? Should I just not even worry about it and proceed to lock it down? Or might that be a turn off for buyers until closer to the end of their lease?

Originally posted by @Corey Rippeto :

There's a property I could get under contract for $70k. The numbers on it aren't bad (ARV $225k/Rehab $60k), and I could do a wholesale on it.

There's just one thing keeping me from sending my offer.. It's being rented and the tenant has a lease until September, 2020. 

I haven't dealt with wholesaling properties that have tenants in them. So, i'm wondering.. What should I do in this scenario? Should I just not even worry about it and proceed to lock it down? Or might that be a turn off for buyers until closer to the end of their lease?

 You can wholesale it. The new buyer will have to honor the lease.

@Corey Rippeto You can still wholesale it with a tenant. Make sure to let your potential buyers know that there is a tenant and when their lease is up. Also make sure that you get a copy of the lease agreement prior to closing (give this to your buyer) and make sure that the Tenants security deposit gets transferred to your new buyer.