Trying to wholesale deal.

[Edgar Aguillon]

Hello fellow investors, joined this site almost a year ago with no luck on any deals guess because of the fear of screwing up since I'm still new to this, but something keeps telling me to try so I did a small yellow letter campaign and now I'm stuck on a deal. Man called me about his 2bedroom 1 bath 1car garage it is currently rented with a 1year lease at the moment $600 per month and he still owes $3k on his mortgage. He called me to see what I have to offer but did not say a number just said to call him back with an offer, with the tenants in the house would it still be ok to try and wholesale?

[Jeremy Rubin]

Hey Edgar,

The short answer is yes you can assign a property aka "wholesale" it while there is a tenant with an active lease. The lease is still valid. There are buy and hold investors that will buy a property with tenants. 

As far as the offer, have you done a CMA to see what its worth? Most wholesalers 65% of the ARV then subtract repairs needed then subtract the amount you are charging as a fee. This will give you a ballpark number for an offer.

If you can, get him to make the first offer. When it's too high ask if that's the best he can do. Repeat that a few times until he gives you an offer close to what you have in mind.