Newbie question regarding wholesale contracts

[Chip Williams]

Hi all. I'm wondering what happens when sign your name to a wholesale contract and you cannot find a buyer for the property? Hopefully this doesn't happen often but again I'm new and just wondering about any legal ramifications. Am I on the hook for the property in this scenario? Thanks all for your help!

[Jaccob Heath]

I read an E-book by Sean Terry called ultimate real estate investment.  Very good book, full of tons of information. Must read!

Anyways in his book, he references his "subject to" secrets. Which is your out clause. Under the additional terms/addition you must have the following:

1. Subject to partners approval

2. Contract subject to an acceptable appraisal by buyer.

3. In the event of buyers default, the deposit shall be the sole remedy.

He urges to never sign a contract without those clauses, it saves you if you can't find a buyer and need out. Also, he can't force you to buy his property.  

An addition, the inspection period is how long you have to find a buyer, so make it a month, then you have a month. But with an extensive buyers list, you should do well.

Hope this helps!

-Jaccob