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Wholesaling

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Brandon Franklin
  • Real Estate Investor
  • Atlanta, GA
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Do you really need to pay earnest money or can you assign the contract without it?

Brandon Franklin
  • Real Estate Investor
  • Atlanta, GA
Posted Sep 7 2013, 07:36

I have a few questions about wholesaling scenarios. So let's say I have a deal in the works but I don't have the earnest money deposit needed to secure the contract. It's a rental property (duplex) with tenants in place, paying rent on time, and doesn't need repairs.

1. Could I just assign the contract before the earnest money deposit is due and not have to pay it?

2. Is it possible (and legal) to use the end buyer's deposit to pay for it (if so, would you have to disclose this to them?)?

3. Would the better option just be to bird dog the property instead of trying wholesale it?

Thanks!

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