Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Tracy Mooring - If you don't have the means to close this property then you shouldn't even be involved in it to begin with. You're wasting everyones time and money if you enter into a contract to purchase without the ability to fulfill that contract.
Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Tracy Mooring - If you don't have the means to close this property then you shouldn't even be involved in it to begin with. You're wasting everyones time and money if you enter into a contract to purchase without the ability to fulfill that contract.
Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
6y
You should not enter into a contract that you can't close on. Even if your intention is to wholesale it, your fall back plan should always be honor your commitment as documented in the contract. "Investors" who do this, and then ultimately don't close, give all of us a bad name (and waste our time).
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
6y
If you fail to disclose that you have no intention of closing that is called fraud in the inducement. That is EXACTLY what is wrong with most unlicensed brokers. Operating like that harms sellers and in general, is BAD for the public interest. Last but no least there is NO honest or ethical way to bend and break laws working as an unlicensed broker. Either you have the education, testing, ethics, license, morals, insurance, etc or you do NOT.
Flipper/Rehabber · Cleveland, OH · Member since 2018 · 80 posts · 51 votes
6y
I would agree with what everyone else has said. If you can't close on this deal then you're doing a tremendous disservice to the seller.
As a side note, I should also mention that if you are trying to wholesale a deal that you're buying on the MLS then you're probably not going to have much success as it's not very likely there will be much "meat on the bone" in this deal. This would ultimately lead to you not finding a buyer and having to back out of the deal which comes back full circle to doing a disservice to the seller.
I'm sure these aren't the answers you were looking for but they're honest ones.
When wholesaling, you should be completely transparent. If you're working through a realtor to re-sell a property they are currently listing, and you don't have a means to execute that deal quickly, then you shouldn't be making that offer. After all, the seller already has someone working for them to get their property sold. The only time I would work with a realtor in a situation like this is if I wanted to personally take ownership of the property.
If you're wholesaling, your best bet is to find off-market properties.
Bay Shore, NY · Member since 2019 · 9 posts · 1 vote
6y
@Barry Pekin
Thanks for this answer the reason i posted this was because i execute deals on my own but i saw a video on the wholesaler khang.he mentioned he wholesale alot of deals with realtors.i thought this might be another avenue to wholesale.
I'm not going to second guess others who are successful, so this is more my opinion than anything else.
It's not so much that it can't be done. I just don't think it's where we should be working, where we can find the best deals, or where we can be of the best service.