How to Vet Wholesalers

Question

I've been in real estate for a long time but historically used Realtors and of course there is direct to Seller.

I see wholesale deals come across all the time but how can you vet them? The last thing I would want is to wire money and it ends up being a scam.

Could I require to use my choice of closing attorneys? Could there be any other requirements as a form of protections? Especially because most of the wholesalers I speak with want properties non-contingent, adding another layer of risk.

Thank you in advanced.

Stephen Morales · Answer

Hey Rick, Since you are the Buyer you can have the choice to use your title company. I would have anything to do with that transaction to go through your title company of choice. Are you looking to find deals in your local market where you can physically go see the property? Most of the time we do non-refundable EMD after you walk the property. You should never put up EMD without seeing the property or having someone you trust see the property first.

Rick Albert · Answer

Got it. I'm seeing some wholesalers wanting to use their title company and this is out of state but I have some people I trust there to check things out.

Thank you!

Stephen Morales · Answer

I would say most wholesalers have escrow open with their title company of choice but at the end of the day your paying the closing cost so you should be able to choose who you want to close and purchase title insurance from.