Wholesaling to an end buyer who is using financing????

[Derek Beatty]

Wondering if someone can help me out. I have a property under contract. I found a cash buyer and did a contract with them but now they are trying to back out of the deal because they found out the property is in a flood zone. I have a new buyer interested that sent me a pre qualification letter when I requested POF. I'm now nervous because I don't know how this would work now that the new interested buyer is wanting to pay this way. Any advice ? Has anyone closed a wholesale deal with someone using financing. How does it work?

[Sam Shueh]

Be upfront disclose everything including flood zone designation. Have him release inspection contingency, 3% deposit through a 3rd party. Reason is he already saw the property he can bring someone to investigate time to release it. The deposit must be high enough to wait for his appraiser and loan.  If you are over charging him the appraisal value will not meet the agreed price then he can walk out.