Listing a Wholesale on MLS: OK with lenders?

[Jason Varney]

Hey BP,

I have the potential to get a nice property (townhome built in 2006) under contract in the 60k range. It is owned free and clear by an out of town owner and comps are easily 90k. Currently rented at $950 but could rent for $1,100. It is tenant occupied for the time being and they have kept it in good condition while they've been in it the last 3 years. I saw it today and confirmed this. Nothing would really HAVE to be done at all. Maybe new carpets and paint but that's even pushing it.

I was thinking about wholesaling this to another investor, giving them instant equity and cash flow. But, I was also thinking about listing it on the MLS for a bigger spread closer to market value. If I did this, I'd most likely be getting out of the range of investors and into the realm of potential owner occupants (current tenants are on month to month and will be moving out in 6-8 months after their new home is finished being built). With that said, are lenders OK with this? If I list it after I have it under contract and somebody then wants to buy with financing, will I run into problems with the assignment of contract and having them close? Or am I really only going to be hoping for a cash buyer?

Thanks as always.