Anybody with experience selling property to a wholesaler?

Question

I have sold to a wholesaler before. I listed my property for sale by owner. I was contacted by a wholesaler who connected me to an investor. We agreed to a purchase price. I ask for proof of funds. Investor sent over a purchase agreement. It looks like a standardize purchase contract.

what are some of your experiences with this? Did you ever get scammed?

Joe Homs · Answer

@Albert Johnson a bank statement (can be altered), a bank letter with contact information is better so you can verify the information.  I don't know where you are at, but earnest money usually goes directly to escrow here in California, but if they want to pay you directly and try to find you later in Vegas, that works for me.

Joe Homs · Answer

@Albert Johnson sounds great, but wholesalers will lock you into a contract with the hope of selling it off to someone else and pocket the difference.  They promise you the world and most of the time they cannot deliver.  Definitely ask for a POF and make sure that the initial deposit in large, placed into escrow and is non-refundable after their short initial inspection period.

Albert Johnson · Answer

Thanks. That is how the contract reads. For proof of Funds should that be on bank letter head? Or just showing accounts with address, phone numbers and balance?Contract shows POF accounts, balance, address and phone numbers.

They did mention in contract earnest money will be payable to me non refundable.

Joe Homs · Answer

@Albert Johnson  What is the condition of your home?  You should only want to sell your home to a wholesaler if it requires major repairs and you need the money ASAP.  You will always get more if you put it on the MLS.  Where is the home at?

Good Investing...

Albert Johnson · Answer

It's in good condition. I am getting more than asking price.