How to tell if you are being scammed by an Wholesaler?????

[Murray Reginald]

Hi BP,

I've recently connected with some Wholesalers to purchase under market properties (70%-75% ) that I could BRRRR however, I was wondering what type of precautions if any should I take when doing transaction with wholesalers, should I sign a contract and should I pay a down payment? The contract states the down payment is NOT contingent on anything beyond the conveyance of clear and marketable title to the property. I am not trying to bash anyone or think that wholesalers are crooks, I just know that there is always some type of scam in anything where there is $$$$$$, and to invest large amounts of money is nerve recking!!!

[Bob S.]

Quote from @Murray Reginald:

Hi BP,

I've recently connected with some Wholesalers to purchase under market properties (70%-75% ) that I could BRRRR however, I was wondering what type of precautions if any should I take when doing transaction with wholesalers, should I sign a contract and should I pay a down payment? The contract states the down payment is NOT contingent on anything beyond the conveyance of clear and marketable title to the property. I am not trying to bash anyone or think that wholesalers are crooks, I just know that there is always some type of scam in anything where there is $$$$$$, and to invest large amounts of money is nerve recking!!!

You do not give the wholesalers any money, it all goes to the title co. Also you do not buy at 75% below ARV, your ALL-IN price needs to be at 70- 75%. Correct all deals are AS IS, so you need to walk them or a member of your team does. I STRONGLY suggest you get to a meeting, and learn 1st hand

BTW, the only way you are going to lose money is if YOU do not know what you are doing. They are not making you send money, or making you close. You walk it, run the numbers, if it makes sense, then move forward.  

All the best