BiggerPockets

1) When wholesaling, how long do most contracts have on them before the property needs to be closed?

2) How much do these contracts cost the wholesaler?

1.) This all depends. Anything and everything in real estate is negotiable. I guess the answer is whatever you and the seller agree to. I feel most comfortable setting closing for 45 days after execution. Just in case we run into any snags.

2.) The contract in theory can cost you nothing. What can cost you though is the initial earnest money required. This can be nothing if your dealing directly with the homeowner or at least 1% of purchase price if your dealing with reos. But once again, it's all negotiable.

Hi, what is customary of what can you do? WItyhout getting silly like some gurus might suggest, a contract term may hagve good reason to remain open, say until someone goes in and do repairs. To lock something down to a set period is not really a requirement. How your contract will be viewed, if it ever is viewed and considered, begins with, what is the intent of the parties? Is it logical, fair, consistant for similar deals in the area? If you are my buyer and I agree to wrap a seller financed note I have (with the lender's consent) my lender might say OK, but I want the place fixed up first. If I don't have the money to do repairs, I might enter into a sale contract (with that wraped financing) with a settlement date six months later. Circumstances could dictate that.

A contract can also expire and then be renewed, something like that could go on for years. There is a commercial deal in my town that has been bouncing back and forth about ten years and while it has never closed, it's been under contract between the same parties over the years.

Costs? Nothing to very very much, especially if you do something that causes problems.