Updated almost 2 years ago on . Most recent reply
Question about wholesaling
What prevents your end buyer from waiting out your option period and going direct to your seller?
This implies that there is an option period - isn't there? To rephrase my question, if I put a house I intend to wholesale under contract for $100k, and find an end buyer who agrees to pay $130k, what prevents said buyer from doing a little digging and contacting seller and waiting out whatever option period me and seller agreed upon and saving $30k? In an unlicensed transaction, what recourse do I have to prevent this? Do I just not tell them the address? This is a hurdle I'm facing I still can't figure out.
I'm in Austin, from DFW, and am licensed in TX.
Most Popular Reply
@Tyler Austin the correct answer is recording a memorandum of option. This clouds the title and makes it unable for the seller and cash buyer to close a transaction without your notice, since the title is clouded.