Are due diligence fees customary when purchasing from wholesalers? Should I be leery about paying since I don't get that money back? Is a $2,000 DD fee reasonable on a $30,000 property? The amount of work to get it ready for rental is about $15,000.
@Tomiko Graves No that's not normal. I would not work with a wholesaler who tried to pull that on me. There are some honest wholesalers out there but there are a lot of scum bags looking to make a quick buck too. Be careful. The only entity that gets money before closing is the title company if you are putting any earnest money down.
I have never heard of that fee. You do your own due diligence.
@Tomiko Graves typically these are non refundable so be aware of that
@Tomiko Graves Is the fee part of the $30k? As in an earnest money deposit? Or in addition to the purchase price?
If the former, its normal. If the latter, walk away