Can I wholesale a deal that I am unable to keep?

[Laura M.]

I have a contract to purchase a 2-unit house in one of the few cute, historic Colorado towns that are still affordable. The historic house is currently commercial on the ground floor with an apartment on the second story. Can be used as commercial / mixed use or as a 2-unit residence. The downstairs unit doesn't have a proper kitchen, because it is currently being used as commercial space. Except for the missing kitchen cabinets & appliances, it is perfectly rentable (needs paint & new carpet, and associated freshening up.) I planned to purchase the house and turn it into a short term rental (Airbnb). THe house is selling way below its market value because it is currently junked up with the owner's possessions, and the owner is a curmudgeonly old guy who is not a savvy seller. However, I am simultaneously purchasing the major historic building in the downtown, so I just don't have the capital to purchase this house. My price is easily 100K below what the house would be worth if the property were cleaned up and marketed properly. And that is without taking into consideration the major investments in the downtown that I have inside knowledge about. Am I crazy to try to find a buyer who does have the capital and wholesale it? It seems like it could be a GREAT deal for someone else to flip or BRRRR or to hold long term. I don't know anything about wholesaling, and have never even considered it until today. Would love to hear some thoughts or advice. Thanks!

[Pratik P.]

Sounds like you have a great deal. Don't lose it!

Is your contract assignable? 

Even if it isn't you could possibly double-close using the end-buyers funds. I would ask your title company if they can do that. If not, you could use transactional funding.

Your final option is to find an HML, close on the property, clean it out and put it on the market. If you're market is hot, you shouldn't have a problem unloading it quickly.

To find buyers, just start calling your investor network and see who wants it. Maybe you can attend your local investor meetups and show it to people there.