Can you wholesale apartments ?

Question

I was wondering can you wholesale a single apartment unit . Not a building .

Ex- Someone wants to buy a 1 bedroom their budget is 1,500 ..

I find a good one for 1,200 , matching their criteria and etc.

Is there anyway I can wholesale the deal and get the extra $300 ?

Brian Gibbons · Answer

If you are providing a fee for service, chances are you will need a leasing - sales license.

You can lease and assign the lease as a principal, but if you do alot of them, well the result speaks for itself.

Erik Hitzelberger · Answer

There is a person in my area who operates a service to find tenants for landlords.  He charges 50% of the first month's rent to find advertise, handle showings, screen tenants and get the lease signed. I fairly certain the landlord has veto power prior to the lease signature.  I don't use the service, but I know several people who do.  This includes people who have been in the business a long time and know what they are doing.  They just don't want to bother.

Jon Holdman · Answer

Collecting $300 a month for setting this deal up is highly unlikely.  Frankly, most potential tenants aren't that dumb.  They know what rents are.

Now, could you make money as a leasing agent?  Absoutely.  But its a one time fee for finding a tenant.  Around here that's typically half a month to a full month's rent.  But you need a real estate agent license.

Tia Williams · Answer

@Wayne Brooks

haha , I get it .

Wayne Brooks · Answer

You'd make more money working at Mickey D's.

Tia Williams · Answer

@Wayne Brooks

Thank you Wayne for the reply .

Just from curiosity how about if they are willing to pay me a fee for finding it ?

is that legal ?

and

Do you think if I can set up an agreement with a landloard to find them tenats for a fee ?

Wayne Brooks · Answer

Forget it.  They will soon find out what the real rent for the apartment is/should be.

Tia Williams · Answer

@Jon Holdman

yes Jon I mean renting .

I'll explain a little more .

I mean if someone wants a 1bdr / 1btrm and their budget is 1,500$ .

If I find that but for cheaper 1,200$ , is their anyway I can set them up with the apt and still get the extra 300$ for basically finding the apt for them ?

Matt Devincenzo · Answer

@Tia Williams search for "Master lease" or "master lease option".

Jon Holdman · Answer

I assume you're talking about renting here, not buying. This would be subleasing.  You're leasing the unit for $1200 and then subleasing it for $1500.  Yes, you can do that.  However, almost all leases forbid it.  And any misbehavior on the part of your subleasee (perhaps even being there) can result in an eviction and that eviction would be against you.