Non-Investor new Wholesalers almost ruined a family's credit

[Jeff Filali]

Purchased another property this week and the wife cried and hugged me, thanking me for saving them from a terrible situation.  Here's what had happened.  About 6 months ago they decided to contact someone off an ad to see if they could sell their house they lived in and buy a new one across town.  A wholesaler came out and represented themselves as a "cash buyer" and put their house under contract.  So the owners purchased another home and moved...  Closing date came and the wholesaler kept delaying.  2 months go by and the owners are still paying two mortgages... Fast forward 6 months later the owners have been paying two mortgages, they're getting behind on both, this situation is turning very bad....

They finally called me and I   ended up buying the house myself which turned a very bad situation into a win, win for both of us.  But this situation could have turned even worse, the homeowners could have ended up losing both homes and ruining their credit.  

This all happened because the numbers were not good for a flip, the original contract was more then any investor would pay on that home. 

If you're a new inexperienced non-investor wholesaler, be careful. Know your numbers or work with someone who does.  Especially if dealing with an occupied home with a mortgage. 

[Nick C.]

Sounds like they had a sketchy one sided contract. Even if the intent is to wholesale, either perform as spelled out in the contract or forfeit the EMD. No need to drag it out for months, have some ethics, or at least a conscience.