Risks of Wholesaling Sub-to Deals

[Jeremy Bourgeois]

I have a pretty solid sub-to deal that I can put under contract, but I'd prefer to assign it rather than take it down myself. I'm hesitant because I don't want to be on the hook if in the future something goes wrong like the buyer stops making payments. Now, I would of course be vetting buyers and making sure whoever purchases the deal has a solid track record and is a trustworthy individual/company first, but things happen. If I am under contract with the seller, even though it would be assigned to a buyer, would I still be at risk here?

[Marco Bario]

Quote from @Jeremy Bourgeois:

I have a pretty solid sub-to deal that I can put under contract, but I'd prefer to assign it rather than take it down myself. I'm hesitant because I don't want to be on the hook if in the future something goes wrong like the buyer stops making payments. Now, I would of course be vetting buyers and making sure whoever purchases the deal has a solid track record and is a trustworthy individual/company first, but things happen. If I am under contract with the seller, even though it would be assigned to a buyer, would I still be at risk here?

Subject to deals are not for wholesaling. Doing so places all involved parties at risk, and I fear will attract the attention of legislators thanks to those who do things carelessly.

Instead, stay in the deal by closing on the purchase and selling with a wrap. But intend to keep your word to the seller by making their payments at all costs or selling the wrap for a high enough price to pay off the underlying.