I've reviewed dozens of forum posts and articles; however, I haven't been able to find the information I'm looking for! All help is greatly appreciated! This situation has a few questions associated with it but I'll make it as simple as possible. SEE BELOW.
I plan on wholesaling a property to an End Buyer and closing soon. I want to be prepared in case they fail at the closing table to quickly turnaround and have another Buyer at the closing table (better safe than sorry).
A) What due diligence can I do beforehand to vet my Buyers more thoroughly before assigning the deal to them?
B) What are some best practices for quickly placing a new Buyer at the closing table after one has already failed?
What are the consequences to you if you fail to execute the contract?
Some investors wouldn't mind submitting a backup offer that would essentially be a sale option to you, however options usually require compensation. For instance, if I was to have $35k earmarked for you to use as a sell option, that you can call anytime, up to some date - then I'd want maybe $200-300 in return. Of course, for a good enough deal some folks might be OK just having that offer out there on the off chance they get a really smoking deal.
Different folks are capitalized differently. If someone has a LOC (line of credit) that is only 5% utilized and the max is say $500k, they may be interested. For someone in the early stages of BRRRR and waiting for their next refinance, no way.
@Jim Goebel thanks for sharing your insight!