First wholesale deal questions
I was working as a bird dog for an investor who was quite dishonest, but that's another story for another day...While I was calling sellers for him, I connected with an out of state investor who is wanting to buy 4 plexes and asked me to contact him if I came across any and today I did. It's a steal of a deal and I would buy it myself if I could. I was going to contact him and give him the lead and charge a bird dog fee, but I think, I'm going to try to do it as my first wholesale deal instead.
I have several questions. The property doesn't need any repairs. So how do I analyse the deal? I don't have to worry about figuring out any repair costs. Tenants are all in place with great rental income. Do I have to pay a earnest money deposit on the property when I do my contract and if I do, if the deal falls through for some reason, do I get it back? Secondly, I've been reading lately, that when I do my assignment contract with my buyer, that I should require him to pay an earnest money deposit. It makes perfect sense to me that he should pay one, so I know he's serious and doesn't leave me hanging at the closing table. Have any of you wholesalers done this with your buyers?
When I am talking to my seller, do I just tell them up front that I am wholesaling the deal? Last question. lol...Where can I go to print up the correct contracts that I'm going to need for this? Sorry for all the questions and I appreciate any help!