"tenant in the house" so you can't see the house, Mr Wholesaler..

8 Replies

Tenants are additional barrier to viewing the property before making the offer. The potential seller "doesn't want to disturb the tenants" when I ask if I can have a look. I'd say I have failed as a wholesaler to find a seller that's motivated enough or I haven't done a good job of building rapport to show I am serious. No matter though, what's the best practice to get in to have a look? Magic phrases? Polite persistence? 

@Paul Winka   He may know that you're a wholesaler who is going to try to tie up his property with a $10.00 down payment and then bail out when you can't find a sucker to buy the marked-up deal.  That's the wholesaler's stock in trade.

If he suspects that you're not a real buyer, he knows that you're not worth disturbing his tenant for.  So how about giving him a $5,000.00 non-refundable deposit to show him that you're serious? 

Don't worry - I know the answer. He's got your $10.00 EMD, what else could he possibly need?

Otherwise, this isn't a hard concept.  As a smart owner, he knows it's not worth irritating his tenant by letting every Tom, Dick and Harry traipse through their living space.  If he's actually selling the property, he only gets so many bites of that apple before the tenant refuses entry altogether - and that can screw up a deal with a real buyer.

If you were a real buyer, I'd tell you that you can learn 95% of what you need to know by looking at the location, the roof, the exterior, the common areas, the foundation, the utilities and the basement.  You make your offer contingent on a final inspection of the tenant's living area.  If the seller is smart, he will severely limit the kinds of objections that can be used to get out of the deal.

THe should arrange access only after you have a fully executed P&S with a significant deposit and the seller/seller's agent has vetted your pre-approval letter with the lender. And not one of those "print your own" pre-approvals from a hard money website. Those are garbage and sharp agents and owners know that. Likewise, not a worthless pre-approval from a Rocket Mortgage or Quicken loans, which are issued before they even receive the supporting documents.

Polite persistence and magic phrases don't change any of the above. Write a serious offer with a serious EMD or move on.

I would echo most of those points. I have purchased many of those points. 

I’ve purchased many/most of my properties without seeing the inside personally. When the inspection occurs they take good pictures of problems. 

I also like to used large EMD. In the end it doesn't matter as it's just part of my downpayment, but it's helpful in convincing the seller you could buy the house. Someone looking to buy a house should have $10-$20k for an EMD if they have to put down $40-100k to make the purchase anyway.

Whats going on Paul,

Speak to the seller about your concerns and have the tenants send you photos.

Photos to include: Kitchen, Living Room, Rooms, Bathrooms.

Once you get a better idea of the condition and feel better about the purchase then send over a P&S agreement.

Make sure to always pay an option fee along with your earnest money deposit (just incase property has undisclosed damage). NEVER dish out thousands of dollars of EMD on a sight unseen property. 

Best of luck. 

They don't think you are serious or they are not motivated enough or they are a wimpy landlord who has under-renting tenants and is scared to tell them they want to sell. Either way, none of that is working for you. If you use Chris Voss techniques to redirect the conversation when a seller wants an offer with no access, you would ask, "How can I in good faith make you a fair offer without seeing the inside of the property to assess the condition? If I did that, how reliable could my offer even be?"

Originally posted by @Joe Gonzalez :

Speak to the seller about your concerns and have the tenants send you photos

Thanks, but the owner said he doesn't want to let tenants learn of intent to sell though, so that's not really a solution. And showing up and driving by and knocking on the door will spin my wheels at best, annoy the tenant and the owner at worst.

Seller must be in denial about the situation or just not motivated enough. The cumulative effect of all the wholesaler calls, lowball offers, etc has poisoned the stream a bit. Wholesalers are just above used car salesman and politicians with their reputation. 😀

@Paul Winka It's a common practice, most sellers don't want their tenants to know they're selling and most tenants don't like having a whole bunch of strangers walking their home. 

in my company we only do 1 showing with serious buyers, our buyers have to put an EMD in escrow before any showings, we usually bring 1 or 2 backup buyers at the same time, just in case the first one doesn't perform, this process allows us to disturb the tenants only 1 time.

Originally posted by @Jonathan Greene :

"How can I in good faith make you a fair offer without seeing the inside of the property to assess the condition? If I did that, how reliable could my offer even be?"

❤️this. Saving it to my evernote on sales phrases that resonate well. 😀

Thanks, but the owner said he doesn't want to let tenants learn of intent to sell though, so that's not really a solution. And showing up and driving by and knocking on the door will spin my wheels at best, annoy the tenant and the owner at worst.

What I've done previously is having the seller mention to the tenants that they're having an inspection for the mortgage/insurance company. Tenants didn't have a problem with it, but you'll run into the same issue if you're trying to show the property to your end buyer.