Wholesaling Fixer-Upper Houses in Tennessee

The short answer

Can you wholesale a fixer-upper house in Tennessee?

Yes, if you follow the state wholesaling disclosures and price the repairs honestly. The seller should understand that you may assign the contract to another buyer.

A fixer-upper may need paint and flooring or a new roof and mechanicals. Sellers with these houses often cannot afford repairs or do not want to manage them. A cash buyer who accepts the condition saves them time and stress. Our repair cost guide helps you build a budget before you offer.

Tennessee’s wholesaling law, T.C.A. 66-4-401 to -403, says you should disclose in writing, before the contract is signed, that you may market your equitable interest. Use bold, large print inside the agreement. Give the seller notice of the assignment date at least three business days before it takes effect. Our assignment guide and legality guide explain more.

The opportunity

Why fixer-uppers sell well in Rutherford County

Murfreesboro keeps growing as Nashville’s southeast neighbor, with Middle Tennessee State University, big employers and new subdivisions. Older homes near the square, along Old Fort Parkway and in nearby Smyrna stay in demand even when dated. Rehabbers see room to add value, and renters keep landlords hunting. Combine that demand with accurate comps and you can price deals well. A tired rental on a quiet street can be just as good as a dated house near campus, because both draw buyers who know the area and can move quickly. See our comps guide.

Lead sources

Where to find fixer-upper leads in Murfreesboro

• Driving for dollars. Peeling paint, overgrown yards and tarps show worn homes. See our driving guide.
• Code violations. City notices can mark neglected houses. See our code violation guide.
• Absentee owners. Owners who live elsewhere may sell worn rentals. See our absentee guide.
• Direct mail. A simple letter to dated homes can start conversations.
• Expired listings. A house that failed to sell as-is may suit a cash offer.

Your exit

Who buys Tennessee fixer-uppers

Rehabbers buy fixer-uppers when the spread is wide enough. Landlords buy when rent covers the repaired house. Some builders buy for the lot. Send the buyer repairs, comps and photos together. A one-page sheet with the address, price, ARV and repair list saves everyone time, and it shows you did the work before you asked for money.

Be honest about what you do not know. If the foundation or roof is unclear, say so and let the buyer inspect. Trust makes the next deal easier. See our inspection contingency guide for protection.

Step by step

How to start wholesaling fixer-upper houses in Tennessee

1. Walk the house. Photograph every room, the roof, the mechanicals and the foundation.
2. Pull comps. Use the ARV calculator and sold sales.
3. Estimate repairs. Build a line-item budget and add a cushion.
4. Set your number. Run the MAO calculator with the buyer’s profit in mind.
5. Disclose in writing. Put the bold disclosure in the contract before signing.
6. Find the buyer. Match the house to a buy box and share proof of repairs.
7. Notice and close. Send the three-business-day notice and close with an investor-friendly title company.

A Murfreesboro owner inherited a 1970s brick ranch with old wiring, worn floors and a leaking roof. He lived in another county and wanted it gone.

You put it under contract at $215,000, with your bold disclosure in the agreement. Comps in the area suggested $340,000 after repairs, and you estimated $58,000 of work.

A rehabber took the deal, paid you $12,000 for the assignment and closed in 21 days. The numbers left room for the rehabber’s profit. The heir received his money without paying for repairs, showings or months of carrying costs, and he did not have to manage a contractor from another county.

Tennessee rules to know

Disclosures, condition and brokerage rules

Tennessee’s seller disclosure law covers one to four dwelling units. An owner usually gives a disclosure statement or a disclaimer, and the disclaimer works only if the buyer waives the statement. If you buy as a principal, you may be the buyer who waives it. Understand what you are accepting. Wholesaling disclosures under T.C.A. 66-4-401 to -403 are separate.

Do not list or advertise the owner’s house as if you were a broker. Under T.C.A. 62-13-301, brokerage without a license is unlawful, and the sources we reviewed do not settle how assignments are treated, so check current guidance. A deed carries a $0.37 per $100 recordation tax, while a bare contract assignment is generally not a deed. Read our attorney guide.

Learn it with a mentor

Sharpen your repair math

Repair estimates make or break fixer-upper deals. Mentorship students send us photos and budgets, and we help them find what they missed. We also review contracts so the disclosure language and the buyer’s timeline match what you promised the seller.

FAQ

Fixer-Upper Houses in Tennessee: common questions

Keep going

More Tennessee wholesaling guides

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

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