Buying from a Wholesaler

[Melissa K.]

Hello,

I am looking to purchase a fixer upper from a wholesaler, however, most that I speak with say that they don't have inventory or that their houses go in a day or two.  Are houses really selling that quickly or is that just a statement to get me to buy fast?

Also, once I have a house under contract are there any stipulations that allow me to cancel the contract?  For example, if the repairs cost more than what the wholesaler estimated or if the arv they have estimated is wrong? etc

Thank you for your help!

[Chris Lemire]

@Melissa K. Always run your own numbers. There are good and bad wholesalers out there, but due to the low barrier to entry and large number of guru's preaching wholesaling, there are a lot of novices who haven't got the experience to make proper estimations yet.

In regards to your second question, I am not an attorney, so ask yours, but your options will depend on the wholesaler and their contract. If they are simply assigning you their contract with the original seller for a fee, you become bound by the terms of the wholesaler's original contract with their seller, along with any addendum you may have signed with the wholesaler. 

If the wholesaler has closed on the property, you're bound by whatever contract you've signed with the wholesaler, just like with any other seller.

If they intend to assign you their contract, make sure you get a copy of the original agreement before you sign anything.