Wholesaling House Still Occupied by Homeowner

[Luke Paul]

Hello, I'm a little confused in the area of marketing to another investor when you get a contract signed with a homeowner. If an investor wants to do a walk through of the house, how can I let them do that if the house is still occupied by the owner? I have a section in the contract that allows access to the property. But do I need to have them give me and others access to the property as soon as the seller signs the contract? That way I have time to effectively market the property and allow investors a walk through? Thanks so much!! Luke

[Karen Rittenhouse]

@Luke Paul - if you're wholesaling then you intend to close on the property and resell it. In that case, tell the seller what you're doing and get permission to show - usually once a week. That way, the seller is aware you are bringing your potential buyers through and once a week is not much of an inconvenience for your seller. Taking multiple buyers through at the same time creates a feeling of competition which can even increase your selling price.

If you're planning to simply assign the contract without closing on the property - an assignment - then you also need to be honest with the seller because they will see your profit listed on their HUD at closing when your buyer ends up being the one to buy the property.

For this reason, we only do assignments when we're working with other investors so it's ok for everyone to see all the numbers. A lot of retail sellers are not happy when they see your middle-man profits.

If you plan to do a double-close to keep the numbers hidden from your buyer and seller, you still need to have funds available to purchase on your own in case your buyer doesn't show up for the closing.

There is much to be prepared for and to know when wholesaling or assigning!  Good luck.