Sugar Land, TX · Member since 2016 · 1 post · 0 votes
I'm looking to get into wholesaling but am curious about what happens if you get a house under contract but you can't find a buyer in time. What would happen in that case? Any and all help is much appreciated!
@Mason Schuster You may not have a great deal and need to go back to the seller; happens to wholesalers from what I understand ; ). An investor will need a lot of "meat on the bone", especially in this environment and depending on your market. From there either execute the contract again at a different price or cancel the contract if you two can't agree on price, and move on. IMHO
Following this post to see what other, more expert, investors say.
@Mason Schuster You may not have a great deal and need to go back to the seller; happens to wholesalers from what I understand ; ). An investor will need a lot of "meat on the bone", especially in this environment and depending on your market. From there either execute the contract again at a different price or cancel the contract if you two can't agree on price, and move on. IMHO
Following this post to see what other, more expert, investors say.
If you get a DEAL under contract, you will have buyers hunting you down to purchase. The trick is sorting through all these "buyers" to find a true CASH BUYER who will close on time and won't play games with you. Also, like @Drew Holland said, if you really can't get a buyer, then you most likely just don't have an actual deal, and you'll need to go back to the seller to renegotiate down.
As a more direct answer to your actual question: when you can't find a buyer to close on your deal, then you will terminate the contract you have with the seller. That is why you give yourself at least a few days of due diligence/inspection period; enough time to market the deal, but not so much time that the seller is screwed in any way at all if you drag it out and then cancel the deal.
Hope that makes some sense, feel free to reach out any time. Happy to help.
Honestly I’m surprised you haven’t been crucified yet.
Really though, assuming you use or used a TREC contract and gave the seller consideration for a termination option, you can use that.
Likely, if you are like most wholesalers that contact me, your deal isn’t that good or you are trying to squeeze too much out of the deal for yourself without leaving enough room for the end buyer. Could be your repair numbers are off.
If any of these are the case, hopefully you have listened to the feedback and you can go and renegotiate the price with the seller. Depending on how you approach this, it sometimes works.
And as a last resort, you can walk from your earnest money. If you do this, make sure the seller signs the release of earnest money form and provide that to the title company so they can cut the seller the check.
Tbh there are other options as well but these should get you started. The very best option is get great deal and you don’t have to worry but even the best over offer or can’t find an end buyer every now and then.