Bad idea to get multiple properties under contract?

[Jonathan Farber]

With so much uncertainty currently and in the next few months, I am considering making offers on a few deals in my pipeline at the moment - with corona contingencies.

My question is, is there a downside of getting multiple properties under contract with the goal of only taking some of them down?

Sort of as a hedge but also because it doesn’t seem like there is a lot of risk in doing this? Aka return of earnest money deposit.

Also, if the deals still seem great at the end of due diligence, maybe they can be wholesale'd or JV'd with someone else.

Any blind spots here or things I’m not thinking of?

[Charles Seaman]

@Jonathan Farber The biggest risks to doing this are below.  If you're okay with them, then I'd say go for it.

1.  Potentially ruining your reputation with the brokers that bring you the deals because word travels fast and you might get a reputation for being a guy that gets deals under contract, but then not performing.  This will be a hard stigma for you to overcome.

2. Incurring costs for deals that you don't intend to pursue. Even if you get your EMD back, you'll still incur legal fees, lender fees, inspection fees, and other costs that you will not get back.

3.  Not being able to raise sufficient capital to close all of the deals that you actually want to close.