I am new to wholesaling I have not yet made a deal but I am look forward to my first one, but I must admit that I am a bit nervous. I have been doing my research and I have a good understanding of the business. One thing I don't understand is what happens if you get a property under contract but you cannot find a buyer. How do you get out.
Investor · Santa Rosa, CA · Member since 2012 · 402 posts · 96 votes
11y
That's a huge topic. Obviously we want to avoid this situation, it's unfair to the seller. Get to know a good buyer or two, they could help with making ballpark estimates and offers relevant to your market. You will have a contingency in your contract that will allow you to back out of the deal legally, but if you make conservative offers you'll only need to use it for a legitimate surprise, e.g., a cracked foundation. I had a situation where it took the county inspector awhile to get to the property and when he finally did we got the worst of news, so we had to renegotiate but I could have cancelled the agreement legally.
My unprofessional advice would be to have the sellers' interests at heart but protect yourself legally.