Hello fellow BP members! I've read many articles praising the art of wholesaling and the low risk of this method of REI, but one area isn't quite clear to me. If the wholesaler does not find someone to assign the contract to prior to the closing date, is the wholesaler required to ourchase the property?
Typically no but it all depends on how your structured your deal and the clauses you have in the contract that will allow you to get out of the contract. If you put earnest money down to secure the property from the owner and then decide not to follow through on the contract without a viable out that was written into the agreed upon purchase contract you would then forfeit the earnest money.
@FrankWoodin. My question to this is what's a decent amount of earnest money. So it won't be much of a big hit to the wholesaler because it took cash resources to even get a deal.
$1000.00. And your price should be lower than that of the buyers of auctions in your town. There's your formula.