Should I still get this wholesale deal under contract?

[Edward Tang]

Hi everyone!

I've been lurking on the forums for several months now while reading and listening to as many articles and podcasts as I can.  I am a licensed Realtor from CA that recently got into wholesaling with a few friends.  We sent out about 7000 yellow letters over the past 2 months and finally got one property under contract.  I also got a verbal agreement with another seller and sent him the purchase agreement.  It turns out the seller is an experienced investor and is willing to sell to us directly at the price we agreed upon but doesn't want us to wholesale it since he has a tenant at the property and doesn't want to bother them.  Based on the numbers, it seems like this one could be a deal if he was honest about the condition of the property (we haven't viewed the property yet).  

What would you guys do in this situation?  Would you just cancel the deal since I'm not going to be the actual buyer, or should I just try lining up several buyers and viewing the property all at once.  If one of the buyers likes the property, than should I just gather the funds to purchase this property and do a double escrow?  

[Luke Kwiatkowski]

Hi Edward,

Investing in real estate is all about creating passive income streams, I would remember that.  If the property cash flows, and it has a long term tenant, and rest of due dilligence holds up, then I would seriously consider buying and holding.  You could wholesale for say $5k, or you could create and endless stream of cash (in excess of $5k).

Something to think about,

Luke