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Updated over 8 years ago,
Buying from a wholesaler - why no EMD contingencies?
Hello BP! Looking at a wholesale deal in Baltimore city (21213). It's a townhome in pretty good shape on a good street in BelAir-Edison (Pelham). Wholesaler wants $39K cash to close. No contingencies.
Question: I've never worked with a wholesaler and the idea of putting down an EMD that I can't get back if there's some major foundation issue (or the like) seems ludicrous.
Is this standard practice or is this too much risk for a first-time cash buyer to take? Can I request to bring in an inspector before putting down an EMD?
At $39K - even with a $30K rehab - the numbers work great for buy-and-hold on this street.
I've been scouring forums and blog posts and it seems that one area where the info is a little thin on BP is how to work step-by-step with wholesalers for the first time! Any input would be greatly appreciated. Thanks in advance!