I have two potential deals in the pipeline, but the numbers do not make sense for a flip. They would be perfect for an investor that is looking to add more properties to their rental portfolio, which I plan on wholesaling these deals to. Two questions.
What is the best way to market to a buy and hold cash buyer?
If I can't find a buyer, how do I go about cancelling the contract and collecting the earnest money deposit back?
Thanks in advance!
Why would you cancel the contract? Are you going to deceive the seller OR let them know you have no real intention of purchasing the property?
Unless you have some contingency, that has yet to expire at the time of cancellation, in the contract, you will likely not get your money back.
Have you tried the BP marketplace? Craigslist? Reia groups? If it's a deal it shouldn't be too hard to turn.
If you don't close, why would you get your earnest money back? You are the buyer, you entered the contract in earnest.
Close the deal like you agreed, or pay the cost to spend other people's time.
It would only be a $1 earnest money deposit so I wouldn't really care to get it back. There are clauses in a wholesale contract that allow you to cancel. I'm not going to close the deal if I don't find a buyer, that's the point of wholesaling, "subject to my partners inspection" would be my way out of the contract. Not trying to deceive the seller but if I don't find a cash buyer and I go back to re-negotiate and the seller can't go any lower than I would be forced to cancel. Would like to know the proper way to do that though.
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