All Forum Posts by: Matt Nehring

Check out Invest in Debt by Jim Napier.  It is an OLD book but is mainly about the math, which doesn't change.  

Slim to negative cash flow, high likelihood that rates will increase (http://www.bloomberg.com/news/2014-06-26/bullard-sees-fed-raising-rates-in-first-quarter-of-2015.html), all while hoping and praying for appreciation?  Sounds like a recipe for lost sleep.  I say dump this marginal deal and find a great deal.

I believe that to be true however I have not had to test it in court. I think you would have more of a legal leg to stand on if you were trying to force performance under the contract. I agree with others in this thread that the more substantial your EMD the more seriously sellers in general will take your offer. If you are great at building rapport with extremely motivated sellers, you may be able to get away without EMD as Sean Terry suggests.

Please Google "consideration".  A contract is not enforceable unless consideration has been given.  Most wholesalers do not give consideration, which is fine if the transaction settles without issue.  If there were an issue (like if the seller accepted a higher offer after accepting your offer), your contract would not be enforceable in court.  If your wholesale deal is worth $5k, you move on to the next deal.  If your deal is worth $50k, you wish you hadn't written that $10 check which would prove you gave consideration and made your contract enforceable.