Wholesalers 'Contingency' Approach Evades Financial Qualification & Commitment
many agents and sellers want to see how much loan $ you are approved for, and/or cash on hand to afford what you are offering to buy, in order to take you seriously enough to go through the trouble of a showing and the time negotiating offers and terms (lest they waste that time with any and everyone not qualified but just interested in wheeling and dealing to see how low you will go or whatever).
the moment a potential 'buyer' drops the W word, there's this implied expectation for the agent/seller now to suddenly take the wholesaler on their sheer merit - as opposed to on any financial qualification to enter into a binding contract - that they dont have any interest in the property actually closing *unless* they find a buyer to make a profit off of before the contingency period runs out.
i dont wholesale nor consider wholesaler offers but perhaps someday will. i just don't understand what's in it for the seller to waste even more time in contract with someone thats not trying to get financing, but with someone thats trying to find another buyer to enter into a subcontract with that will in turn start trying to get financing within another contingency window; thus the seller accepting a wholesaler offer is entering into a potentially double contingency unless the buyer found by the wholesaler is an investor who is actually cash buyer.
do wholesellers at least forfeit some of their deposit to the seller if/when their contingency period expires unfulfilled?
sorry i'm new to this and while i understand wholesalers target distressed properties that they want a shot at trying to sell to make a profit, i dont understand why sellers would contract with a wholesaler contingency - unless their is a penalty if the wholesaler doesn't deliver by the time the contingency period is up - considering the property is most likely already on the MLS as it is.