Tennessee situation guide · Updated November 2026

Wholesaling FSBO Properties in Tennessee

Wholesaling FSBO properties in Tennessee means working with owners who sell without an agent. You contract to buy as a principal, then assign that contract to a cash buyer. FSBO owners usually want to save the commission, so you must show them a clear benefit. In Memphis and Shelby County, many owners list on yard signs and online boards, and some reach out to investors after a few quiet weeks. Our off-market guide covers the wider picture.

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The short answer

Can you wholesale a for-sale-by-owner home in Tennessee?

Yes, if you buy as a principal and give the seller the written disclosures the 2025 law requires. The seller keeps their own disclosure duties under state law.

An FSBO owner has no agent to read the contract for them, so you carry more of the duty to be clear. Tell the owner you are a buyer and that you may assign the deal. Tennessee’s 2025 law requires that written notice before the contract is signed, in bold and large print. See our legality guide.

Tennessee’s residential disclosure act covers sales of one to four dwelling units. In most cases the owner gives a disclosure statement or a disclaimer, and the disclaimer works only if the buyer waives the statement. That matters when you and your buyer inspect the house. Read about due diligence before you sign.

FSBO Properties in Tennessee at a glance

Wholesaling statute	T.C.A. 66-4-401 to -403 (2025)
Seller disclosure	T.C.A. 66-5-201 and -202, one to four units
As-is sales	Disclaimer works only if the buyer waives the statement
Seller notice	In writing, before the contract is signed
Assignment notice	At least 3 business days before it takes effect
Recordation tax	$0.37 per $100 on a deed

The opportunity

Why wholesaling FSBO properties in Tennessee works

Shelby County has some of the lowest entry prices among Tennessee’s large cities, so a small discount still leaves a real margin for a rental buyer. FSBO owners in Frayser, Whitehaven, Raleigh and Orange Mound often price by feel. They may have tried a yard sign for a month with no good offers. A calm, direct offer works better than a sales pitch. Offer a fast close and no repair requests, and show the numbers from the ARV guide. Keep your promises simple so the owner trusts you.

No agent fee

Owners already chose to avoid a commission, so a clean net sheet speaks to them. See seller net sheets.

Fast decisions

One owner makes the call, with no listing agent in between.

Rental buyers

Memphis has a deep pool of landlords who want solid, discounted homes.

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Lead sources

Where to find FSBO leads in Memphis

Yard signs. Drive neighborhoods and note signs. Our driving for dollars guide shows how.
Online boards. Owner-posted ads on classified sites and community groups show asking prices.
Public records. Confirm the owner and the loan balance through county records.
Skip tracing. If no number is posted, try skip tracing.
Follow-up. Many FSBO owners list with an agent later, so keep in touch. See negotiating with sellers.

Your exit

Who buys FSBO deals in Tennessee

Memphis landlords, small portfolio buyers and fix-and-flip crews buy these deals. Ask each what zip codes, repair budgets and price caps they use. Our buy box guide lists the questions.

Tell your buyer plainly that the owner sold without an agent and that you hold the contract. Some buyers will ask for the disclosure statement or the waiver. A title company that knows investors will keep the assignment clean. Use an investor-friendly title company.

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Step by step

How to start wholesaling FSBO properties in Tennessee

Meet the owner. Ask why they are selling and how soon they need to move.
Check the property. Look at condition, liens and the disclosure statement or waiver.
Run the numbers. Use the ARV calculator and the MAO calculator.
Write the contract. Include your assignment language. See assignment of contract.
Disclose in writing. Put the seller notice in bold, large print before signing.
Find the buyer. Send the deal to your list as a contract. Use your buyer list.
Close. Give the 3 business day notice of the assignment date, then close through title.

Your checklist for wholesaling FSBO Properties in Tennessee

Tell the owner you are a buyer who may assign.
Put the required notices in bold, large print inside the contract.
Confirm whether the owner is giving a disclosure statement or a disclaimer.
Do not describe yourself as the owner’s agent.
Have a Tennessee attorney review your contract.

A Tennessee example: a Memphis owner selling alone

Asking price	$169,000
Your contract price	$128,000
Estimated repairs	$26,000
After-repair value	$205,000
Assignment fee	$9,000
Buyer all-in cost	$163,000

A Whitehaven owner had a yard sign out for five weeks at $169,000 and had heard only from lowball callers. You visited, walked the house and found worn floors, an old HVAC unit and a kitchen from the 1980s.

You offered $128,000, closing in 21 days, no inspections, no repair requests. The contract carried bold-print notice that you intended to market your interest. The owner read it, signed, and the seller waived the disclosure statement for an as-is sale.

A Memphis landlord paid $9,000 to take the contract and closed on time. The owner kept the savings from skipping a commission. See how a hold plan compares in our wholetailing guide.

Tennessee rules to know

Disclosure, brokerage and tax rules

Tennessee’s 2025 wholesaling law needs written, bold, large-print disclosures in the agreement. You tell the seller you intend to market your equitable interest, and you tell your assignee what that interest is. You also give the seller notice of the assignment date at least 3 business days before it takes effect. The enacted text does not state a cancellation right or a penalty. Check the current text.

Seller disclosure under T.C.A. 66-5-201 and -202 covers one to four unit homes. In most cases, an owner gives a statement or an as-is disclaimer, and the disclaimer requires the buyer’s waiver. Unlicensed brokerage is unlawful under T.C.A. 62-13-301, so avoid listing or advertising an owner’s house. Our attorney guide explains how to find counsel.

Learn it with a mentor

Win owners who sell alone

FSBO calls need a calm script and clear paperwork. Mentorship students share their offers with us, and we help refine them.

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FAQ

FSBO Properties in Tennessee: common questions

Is wholesaling FSBO properties in Tennessee legal?

Generally yes, when you contract as a principal buyer and follow the written disclosure rules of the 2025 law. The seller keeps their own disclosure duties, and you tell them you are a buyer who may assign the deal. Confirm current text with an attorney.

Does an FSBO seller still give a disclosure?

In most cases, yes, for one to four units, unless the buyer waives the statement and accepts an as-is disclaimer. That matters when you and your buyer inspect, because the disclaimer works only with the buyer’s waiver. The rules sit in T.C.A. 66-5-201 and -202.

Do I tell the seller I plan to assign?

Yes. Tennessee requires written notice before the contract is signed, in bold, large print. You also tell your assignee what the interest is. An FSBO owner has no agent to read the contract, so explain it plainly and keep your promises simple.

Can I take a fee from the owner?

Do not charge the owner for finding a buyer. Brokerage for pay can require a license, so ask an attorney. Avoid listing or advertising the owner’s house under T.C.A. 62-13-301, and keep your role as a principal buyer clear in every message.

What notice goes to the seller before assignment?

Written notice of the effective date at least 3 business days before the assignment takes effect. Put the bold, large-print disclosures in the agreement too, and note that the enacted text does not state a cancellation right or a penalty. Check the current text.