Wholesale Contract Getting Out Of
I have not yet done my first deal but I have been doing some free marketing campaigns around my area and spoke to a few sellers. I have not yet found a good property worth putting under contract but I am patiently waiting. I do have some questions if a experienced wholesaler could help clear up a few things for me.
- If you are a wholesaler and you are not able to find a buyer, how do you get out of a the contract with the seller? Do you have to let the seller know verbally? In writing? Just let the title company know you want to back out? Whats the proper way of backing out without loosing your earnest deposit?
- If you have a contract with a seller for 50k and you are assigning the contract to a buyer. Do you put your assignment fee (what you want to make as a wholesaler, let's say 10k) on that contract or do you put the price of the property + your assignment fee which would be 60k in this case?
- When you find a buyer and have the B-C contract signed, when does the cash buyer take the earnest money to the title company or is this something the wholesaler does for the cash buyer? When does the title company call all three parties in to start the closing process?
Thank you