Contract with Escape Clause!?

Question

Hey everyone,

I'm new to wholesaling and i have been searching and searching for a contract that includes an escape clause. I know its been discussed on here before but i couldn't seem to find what i am looking for. Is my best bet just to get one written up by an attorney? Do most of you wholesaler even have escape clauses included in your contracts? Thanks in advance!!

Nicholas Pollock · Answer

Thank you John for your input and the great detail. Didnt mean to stir up any hard feeling against escape clauses but i am considering all options right now and fully doing my research. I am still new to this remember. I understand completely where you are coming from and i will definately take your info into consideration.

John Thedford · Answer

Escape clause? Do you intend to close on a written contract YOU signed, making representations YOU want to buy a property, or MISLEAD the owner, and rely on BS escape clauses to get out of the deal? You have come to the right place for information from the BP cheerleading squad on how to operate dishonestly if that is your desire. Just our of curiosity, if this garbage was pulled on your mother, sister, brother, or best friend would you laugh it off as "just business" or would you be upset that a scammer caused them problems? Why not get funding and CLOSE on the deal. Keep your word? The seller wants his property sold, not lies and BS escape clauses. If you want a few, and don't care about integrity, here are some you can use:
1. subject to my partners approval (your partner can be your pet rat)
2. subject to a 120 day inspection (my inspector is world class and in high demand)
3. subject to a 40 year mortgage at -0-% interest
4. subject to test drilling for gold or silver
5. subject to a test well for oil (make sure you have mineral rights)
6. subject to a new highway coming through the property so I can sell at top dollar through eminent domain

Hope this helps! Get some business cards printed up. Make sure you tell sellers you are NOT an agent, but that you offer everything they can, but without the high fees and 2 years marketing time. Being an unlicensed broker takes skill and cunning. Practice practice practice!

Jay Hinrichs · Answer

standard purchase and sale agreements have due diligence periods for inspections these are traditionally 10 business days.. after that your deposit goes hard.

if you dont close you lose your deposit which is liquidated damages for the seller..

the reason banks and auction companies how require such large deposits is to week out wholesalers as they know most can't or won't close.

this leaves wholesalers basically with one target.. Owners hoarder houses are a good target for wholesalers.. but not sure why someone wants to start in the business in the one activity that is the hardest by far to do and be successful and make any kind of meaningful revenue over a extended period of time.  your always chasing the next deal.  which most get discouraged and quit  I would say 97% of those that try this give up in 6 months or less... with BP and other on line sites touting wholesaling as the way to make money when you have limited to no funds you can imagine the legions of competition that are out there trying to do the exact same thing.

John Thedford · Answer

@Nicholas Pollock

It comes down to one question: if you want to operate honestly, or operate like the two bit cons promoting dishonest dealings on BP. Yes, the post was part jest and part sarcasm. When there are victims, it is a bad deal. No hard feelings here. I intend to keep educating people about the games most of these jerks play. I just educated a victim of one of these cons whose house was under contract. They sent an "inspector" out to the house. Turned out it wasn't an inspector, it was someone they were trying to broker the house to. Classy huh? Low class cons! If you do want to lie and deceive, I have given you very good escape clauses! You can use the one you like most. If you want to operate as an honest man, get funding and find your deals. Every contact SHOULD have one legitimate or even two legitimate escape clauses: condition and funding. Sign contract. If it fails inspection, cancel immediately and walk. No damage done to seller. If you have a financing contingency and make an honest effort for financing and cannot obtain same, cancel. No problem. Honest people do that all the time. The BP cheerleaders will promote using BS escape clauses when they have NO intention of closing. Most people would call that dishonest! I do.

Contract with Escape Clause!?

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