Wholesaling Absentee Owner Properties in Alabama

The short answer

Can you wholesale an absentee owner property in Alabama?

Yes, in most cases. Alabama allows you to assign a purchase contract for a fee if you make the written disclosures the law requires. The rule is Ala. Code 8-42-2, and it applies to single-family homes. Check the current text before every deal.

An absentee owner is someone whose mailing address differs from the property address. The house may sit empty, sit with a tenant, or sit with a relative who watches it. Our absentee owner leads guide explains the types, and our legal overview covers the bigger picture.

You sign a purchase contract with the owner, which gives you an equitable interest in the home. You then market that interest to buyers and assign it for a fee. Under Alabama’s statute, you disclose your intent to market to the seller before you start marketing, and you give the seller notice of the assignment date at least three business days ahead. You also tell any buyer what kind of interest you hold. See our equitable interest guide.

The opportunity

Why absentee owners sell in Alabama

Alabama is full of second-generation owners. A grandparent in Mobile or Selma passes away, the children inherit, and they live three states away. Out-of-state landlords have a similar problem. The owner knows the house costs money every month and has no easy way to fix it. A calm offer from someone who can close quickly solves that. Pair this with our motivated seller guide to sort the real sellers from the curious.

Lead sources

Where to find absentee owners in Alabama

• County tax records. Probate judge and revenue commission records list the owner mailing address. Compare it to the property address.
• Skip tracing. Once you have a name, use skip tracing to find a working phone or address.
• Driving routes. Look for tall grass and piled mail, then try driving for dollars in older Mobile neighborhoods.
• Direct mail. Short letters work well. See direct mail for wholesalers and yellow letters.
• Ownership checks. Confirm who really owns it with an ownership search before you spend on marketing.

Your exit

Who buys absentee owner houses in Alabama

Local landlords, rehab investors and cash buyers who like Gulf Coast and Mobile County stock are your main buyers. Tell each one honestly what you hold: a contract, not the deed. That is also what the statute asks for when you market the equitable interest.

Keep your buyer list organized by price range and area. Our cash buyer guide shows how to build the list.

Step by step

How to start wholesaling absentee owner properties in Alabama

1. Pull the list. Filter county records for owners with out-of-area mailing addresses.
2. Confirm ownership. Check the name and any liens before you contact anyone.
3. Reach the owner. Send a short letter, then call or text within the rules of the TCPA.
4. Run the numbers. Use the ARV calculator and the MAO calculator to set your price.
5. Sign with disclosure. Give the seller written notice that you may market the contract, before you market it.
6. Market the contract. Tell buyers you hold an equitable interest, not the deed.
7. Close with title. Use an investor-friendly title company and give the seller notice of the assignment date three business days ahead.

Dana inherited a three-bedroom house off Springhill Avenue in Mobile from her mother. She lived far away and had not seen it in a year. A tree limb had damaged the porch roof, and the electric bill still arrived each month.

Your letter reached her mailbox on a Tuesday, and she called that weekend. You offered $84,000 as-is, a price that left room for $26,000 in repairs and a fair profit for a buyer. Before you marketed anything, you gave her a written notice that you planned to find an assignee.

A local rehabber agreed to pay $93,000 for the contract. You told Dana the assignment date in writing four business days before closing. She netted the contract price with no repairs, and you earned $9,000.

Alabama rules to know

Alabama rules for assigning contracts

Ala. Code 8-42-2 says a buyer may assign an equitable interest in single-family property for a fee if certain written disclosures are made. They go to the buyer, about the nature of your interest, and to the seller, about your intent to market and the assignment date. A violation can be a Class C misdemeanor and can lead to civil liability of three times the fee. Read the current text and talk to an attorney, because bills in the legislature may change this area.

Alabama has no wholesaler license statute that we found, but a pending bill or a ruling could change that, so check current rules. Calls and texts also fall under federal and state telemarketing law. See our license guide for how to stay on the safe side.

Learn it with a mentor

Learn the full absentee playbook

Absentee leads need a steady process: list, trace, contact, contract, assign. Mentorship students send us their letters and scripts, and we help them tighten each step.

FAQ

Absentee Owner Properties in Alabama: common questions

Keep going

More Alabama wholesaling guides

Read the full Alabama wholesaling guide or pick another situation below.

Guides that go deeper