Currently attempting to purchase a house from a wholesaler to BRRRR. I have never seen the inside of the house. His seller wants signed purchase contract and 10k deposit before allowing me to schedule an showing/inspection. The contingency would be on structural damage and mold. My thinking is house was built in 1947 so there's definitely structural damage. The structural contingency seems like my guaranteed 'out'.
My realtor says it's a bad contract to enter but I dont see the problem with it.
Any suggestions on the situation would be appreciated.
ARV = $115K
Purchase = $67k
What market are you in? The out is probably not as easy as you think. I wholesale and I always try to give people the big picture.
I'd listen to the realtor, the seller knows something you don't otherwise they wouldn't ask for such a large deposit. I might go with check in hand to an inspection but wouldn't put $10k down on a $70k property like that. Structural means different things to different people, there could be no kitchen, or fire damage or bigfoot's hideout you just don't know
I suspect something is hidden. They say place is currently rented out. Haven't verified this yet but this makes me think it's in liveable condition.