Wholesaling with Inherited Tenants instead of Buy and Hold

[Ken Nyczaj]

I'm having some success with my DM campaign and I came across a tired landlord who has multiple properties he is looking to sell off that are all right next to each other, he essentially owns the neighborhood corner- 3 SF, 1 MF Triplex. After looking at the county tax assessor, he got most of these properties at a deep discount, so it seems he may have a lot of equity. Three reasons why I'd rather not seek these properties as investments:

1) A few too many miles outside my sphere I'd like to invest.

2) He asked specifically if I'd be ok with inherited tenants. For my first Buy and Hold, I'd rather not, but maybe depending on his current lease and if any missed rent.

3) Probably one of the uglier streets in this very small city. Not terrible, I drove by at day and night, and the only real problem is some homes aren't well kept.

I'm thinking of wholesaling this group of properties. This county in Maryland does not have a tenant right of first refusal provision, which to my knowledge means he does not have to offer the sale of the property to the tenants.

My question is, what am I getting myself into trying to wholesale a set of properties? My DM campaign has led me to other investors that are looking for properties in this county. I know the basic steps of wholesaling, but doing multiple properties at once seems a little intimidating. Advice Appreciated. Thank you

[Joaquin Rosario]

Hi @Ken Nyczaj,

I would be completely transparent with the tired landlord and let hime know that you will be sending this to a pool of investors that you work with. I would put 1 of the Single Family homes under contract and send that one out to your pool of buyers and see if you get some traction with that one. From there I would move on too the other properties based on the results you had with the first property. 

Have a blessed day.