Worried about double wholesaling potential

6 Replies

Here is the story: I put a property under contract and marketed it (great property).  One individual who I know as a wholesaler says that his partner is going to come check out the property.  He sees it and makes an offer for a little more than asking price with no contingencies and a private lender. Throughout this process I asked them multiple times whether they intend to buy for themselves or assign the contract.  They say they will buy for themselves.  I have other cash offers but this is slightly more and they say they will clost on time. He is willing to give me $2000 cash up front but wants a lock box on the property or a set of keys.  The reason given is to have contractors go in and inspect.  I have never given anyone a lock box access before.  Here is my question: am I paranoid for thinking they might be trying to double wholesale?

If it's what you are willing to sell for, who cares what they do with it after your sale.

It sounds like a double wholesale.   Sounds like your priced it well enough to entertain mutiple offers.   If the numbers work and all parties are happy i don't see an issue but you must be careful, there are investors out there who will lie cause they see dollar signs.   

Tell him you don't feel comfortable.  If you have other cash offers its a good problem to have.   I do think you feel something is wrong.  Go with that feeling.   

Just be careful

I'm worried they won't find a buyer and will screw up my deal.

Get your full assignment fee, as a non-refundable deposit.

So, I bumped up the nonrefundable deposit to $6k.  I don't think a double-wholesaler would pay that.  Any double wholesalers out there who would?

The seller trusted you with the key so you should trust the other wholesaler with the key if he has a buyer don't let greed get in the way closed the deal.

Joe Gore

Join the Largest Real Estate Investing Community

Basic membership is free, forever.