Hi. A potential seller contacted me to buy his duplex house. He wants to sell fairly quickly. There are tenants who live in the house with leases and I am not sure how to approach that.
I don’t have any experiencing wholesaling properties with tenants…have only done vacant properties. How do I approach wholesaling this property with tenants and leases?
In my state a landlord typically has to carry out the terms for tenant leases, including price and length of lease, so be sure to get copies of leases. It might also help to get written signed statements from the tenants as to security deposits, and the terms of the lease, some landlord have been known to provide fake leases in order to sell a property. If the landlord does not have copies of the lease readily available when you right the offer then put into the contract that “any and all leases are to be given to the buyer within 3 days of an accepted offer”
Then just go about the wholesale process as usual
Eric, Thanks for the info (love your blog by the way).
When I get all the info regarding the tenants I know I will have to provide the lease information to my buyers list. And I will get copies of the leases to attach to the purchase and sales agreement for the end buyer as well as signed statements from the tenants themselves. Can you think of anything else I might need to get to cover my butt?
I will follow the same terms I normally would…low deposit, 30 day to close, etc. Market to my buyers list but include the tenant information . I assume I will need to disclose up front how much the tenants are paying in rent and other terms of their lease that may affect the buyer? Correct?
The numbers seem do-able which is why I am pursuing this one even though it is out of my norm. ARV: $400,000. Seller wants $250,000 and the property has minimal repairs…people are living there. I will try to flip to a buyer for $275,000. That’s a nice days work.