Wholesaling Absentee Owner Properties in Minnesota

The short answer

Can you wholesale absentee owner properties in Minnesota?

In most cases, yes. You can contract with an owner who lives elsewhere and assign that contract, if you are honest about your role. Check current rules with a Minnesota attorney before you scale up.

An absentee owner is someone whose tax statement goes to a different address than the property. The owner may live in Arizona, another Minnesota county, or abroad. You sign a purchase agreement at a price that leaves room for a buyer, then assign it to an investor. Our absentee owner guide and assignment guide walk through the basics.

We found no Minnesota statute written only for wholesalers, but check current text. The bigger issue is licensing. Minnesota’s broker definition in chapter 82 can reach a person who sells real estate as a principal often enough to form a pattern, and five or more principal deals in 12 months can be presumed to be a business. Ask the Commerce Department or an attorney how that applies to you. See license rules for wholesaling.

The opportunity

Why absentee owners sell in Minnesota

Winters are hard on empty houses. Frozen pipes, ice dams and a roof nobody checks can turn a neglected house into a bill the owner never planned for. An owner in Florida or Texas who hears about a burst pipe in January often wants out quickly. Minneapolis and its inner suburbs also have many older duplexes and bungalows held as side investments. Remote owners tend to value a fast close over the last few thousand dollars. Pair an honest offer with a closing date they can control. Start with our motivated seller guide.

Lead sources

Where to find absentee owners in Minnesota

• County records. Compare the owner mailing address with the site address in Hennepin, Ramsey or Dakota County data.
• Skip tracing. Find phone numbers for out-of-state owners with skip tracing.
• Direct mail. Send a plain letter or postcard. Our direct mail guide covers lists and timing.
• Driving for dollars. Look for stacked mail, tall grass and an unplowed drive. Try driving for dollars.
• Inherited houses. Heirs who live out of state often want a quick sale. See probate leads.

Your exit

Who buys absentee owner deals in Minnesota

Local landlords and rehabbers buy most of these houses. Many of them work the Twin Cities rings, from Brooklyn Park to Burnsville, and know what a rental duplex is worth to them. Build a list before you go under contract, using our cash buyer guide.

Tell buyers about the roof, the furnace and any known water issues in plain words. Good buyers close faster when nothing surprises them.

Step by step

How to start wholesaling absentee owner properties in Minnesota

1. Pull a list. Filter by mailing address that differs from the site address.
2. Skip trace. Find current phone numbers and emails.
3. Make contact. Introduce yourself, ask about the house and listen first.
4. Run the numbers. Use the ARV calculator and the MAO calculator.
5. Sign the contract. Write ‘and/or assigns’ and state that you are a buyer, not an agent. See writing an offer.
6. Market to buyers. Send a short summary with photos and a closing date.
7. Close with title. Use an investor-friendly title company.

A retired couple lived in Scottsdale and still owned a north Minneapolis duplex they had inherited. One unit sat empty after a tenant left in November. They had not seen the building in four years.

You mailed them a short letter and then followed up by phone. After a video walkthrough they agreed to $178,000 as-is, with a 24-day close. You told them in writing that you intended to assign the contract.

A local landlord took the deal at $191,500 through a title company, and the sellers signed with a mobile notary. Your fee was $13,500, and the couple had no repairs to manage. See calculating ARV for how you priced it.

Minnesota rules to know

License risk, deed tax and disclosure

Minnesota’s real estate broker definition in section 82.55 includes a person who sells real estate as a principal often enough to establish a pattern. The statute says five or more such transactions in 12 months can be presumed a business. Wholesalers who stay well under that level and disclose their role face less risk, but the law can change. Check with the Commerce Department or an attorney, and read is wholesaling legal.

The state deed tax is generally about 0.33% of the price above $3,000, and the grantee usually pays unless the contract says otherwise. Residential sellers are generally expected to give a written disclosure of known material facts under section 513.55 before signing. A wholesaler who is the seller to the end buyer should ask an attorney whether that duty applies. See transfer taxes and working with an attorney.

Learn it with a mentor

Learn to approach distant owners

Talking to an owner who lives far away takes a different tone.

FAQ

Absentee Owner Properties in Minnesota: common questions

Keep going

More Minnesota wholesaling guides

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