Am I An Accidental Wholesaler?

[Jerry Ellis]

So I call an acquaintance with a duplex for sale to ask some questions. My intention is to find a 2-4 unit for buy and hold as my first investment. Turns out it's under contract but then he says he's got three single family homes he plans on listing in a few months. All are rented and while I haven't seen them, I pretty sure that they should be in decent shape. 

At first I thought I'd pass but then it occurred to me that maybe I could do something with them. He's got a a pair that he wants to sell together. Something about the garage for the one is positioned on the lot for the other house. Rented at $600 and $625. Wants $129k for the pair. Third rents for $500 and wants $56,900 for it. Located in a small town in the midwest. He's selling so he can focus on his other business interests. 

So they aren't distressed or at half price. At least I don't think they are. Is there anything I can do here?

[Jerry W.]

Hey @Jerry Ellis, usually a wholesaler gets a contract to buy a property then assigns that property to another buyer for a fee.  If you do not take an ownership interest in the property you cannot collect a fee without having a realtors license and a signed contract.  The point of wholesaling is that the price is so low someone will pay cash to you immediately for the contract.  Trying to sale them for market price will be highly unlikely.  There is usually a pretty steep below market price for wholesalers.  

That being said why don't you run through all the comps and math, and look for any needed repairs to sharpen your skills.  If the places truly are below market maybe you can make some money, if not you sharpen your skills and when he sales them you see how close you were on pricing them.

As a final possibility maybe you can get some owner financing and make them your rentals.  Good Luck either way.