Due Diligence period on NC Contract and Non refundable EMD
I needed clarification in a real estate purchase and sale agreement on a wholesale Offer to purchase agreement. 1) The correct way to explain to the seller whether this is negotiable or not 2) if negotiable who negotiates it ( buyers agent /seller agent in case the best use case is wholesale ( realtor to represent the wholesaler) What is the true logic behind the non-refundable due diligence, in wholesale transactions if the wholesaler is not taking title to the property how is it reflected in the contract, does it get subtracted from the purchase price or not?
#2 Marketing Your Property Contributor
- Flipper/Rehabber
- Wilton, CT
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#2 Marketing Your Property Contributor
- Flipper/Rehabber
- Wilton, CT
There is no "special" "non-refundable due dilligence period, for wholesalers.
That has NOTHING to do with wholesalers or wholesaling. That due diligence period is standard for real estate purchases through an agent for example.
Once you grasp this, you will see how it all works.
Wholesaling is just a strategy that came AFTER selling through an agent was "discovered". Just people always try to exploit things to make money.. NOT a bad thing... if done right.
See the due diligence period is not there "for you to quickly find a buyer and if you can't find a buyer you can just bail".. that is NOT what that is for.,
That due diligence period is when people are legitimately intent to buy the property but need to make sure all is as claimed... so you have a chance to verify everything.
There is no need for a due diligence period.. when you tell the seller exactly what you are doing. I tell my sellers when I am not buying the property, that I am NOT buying the property. I present them with the option to wholesale, and if they agree, then why woudl I put down an earnest deposit when I am not going to buy the house?! Makes no sense right?
My back end buyer leaves an earnest deposit, because THEY claim they are serious about buying the house and if they bail on us (seller and I) then either the seller gets the deposit, or seller and I split it.
That i show it works and all is made clear before anyone signs anything.
Not sure if you were asking this but hope it helps?
