Is it a good choice to wholesale property with tenants inside?
I would say... it depends.
A wholesale deal is still a type of real estate transaction where the seller is going to be selling the house. The seller always has full rights to sell their property whenever they would like, however, depending on state laws, the tenant may have rights to have their lease terms honored by the new owner. I would just make sure you disclose to any potential buyers that there is a tenant living in the house at the time, and whether or not their lease terms need to be honored.
It’s done all the time. It just adds a step for the wholesaler in my opinion. They need to do their due diligence on the tenants and factor that information into the deal (leases, how many people per unit, etc.).
@Jason Toudt thank you I will take that into consideration
@Nathan Pylant thank you I will take that into consideration
@Essence Leandre we find a lot of success targeting tenant occupied lists, the main reason being… there’s a lot less competition! most wholesalers don’t want to deal with the headaches of showing an occupied property (and the potential no-shows) or having to negotiate cash for keys, it add another step to the process but less competition also means you have a better return on your marketing dollars
My advice would be to pre-qualified your buyers to avoid disturbing the tenants several times.
@Yoann Dorat great advice thank you