Drafting a contract for wholesale.

[Randall E Collins]

Initially I drafted a contract for a property, presented it to a title company. Problem is the end buyer backed out and afterwards and I was stuck with a contract with no end buyer for a couple of months. Now the property is under a new contract with a new end buyer and is in closing. My question is, why draft a contract until one locates a positive end buyer. What are the legalities in regards to drafting a contract that one is not able to fulfill. I understand most wholesalers draft a contract then look for a end buyer. WHY?

[Brandon Vukelich]

In my opinion, that is backwards.  You should build a list of serious/qualified buyers before tying up a property.  When I meet with a seller, I know the top 2-3 buyers of mine that will take that property immediately.  My relationship is so good with some of my buyers, that occasionally I will have them join me on the seller appt and have them tell me what price would work for them to take it.  (We don't discuss that in front of the seller.) If you're going to go through the effort of negotiating a deal, you should have a buyer lined up and ready to take it.

Also, I suggest not asking for input on the "legal" issues about a contract on a forum of investors.  Always seek legal counsel from a licensed attorney in your state.  Best wishes on your business!