Wholesale Contract
Getting close to my first wholesale deal. When I am ready to wholesale a fixer -upper to a rehabber, what kind of contract do I use, just a regular purchase agreement? Who performs the inspection, the wholesaler or the buyer? What if the buyer doesn't show up to closing? Am I screwed, will i have to buy the home then myself?
I am a bit unusual as a wholesaler as I only contract to buy properties that I am willing to close on myself. I use a purchase and sale agreement to bind the seller. When I have my buyer, I simply use an assignment form to transfer my interest in the property to my buyer. If you are not ready and willing to close in the absence of a buyer, I would suggest that you use an option to bind the seller. You can assign the option to your buyer or if you do not find a buyer - let the option expire of close the deal yourself. You should be honest with the seller as to your intentions with the option. If you plan on a long term career as a wholesaler, you need to build a reputation for always closing when you contract a property.
Good Luck!
Joe Locklear
****Must Reach Freshman Investor status before posting URL's***