First time buying wholesale property. Any gotchas to look out for

[Asim G.]

Hi,

I am planning to buy a wholesale property to buy and hold. I have heard a lot about wholesale in podcasts and read about it in forum posts such as the following.

https://www.biggerpockets.com/renewsblog/2016/07/0...

I wanted to get feedback from the experts here if there is anything I am missing. Here is the status on the property.

1. The property has an occupant in it who is in the process of moving out.

2. The wholesaler has a contract with the current owner and has opened escrow. I have received a preliminary title report, and the property has a clean title.

3. The wholesaler has sent me a copy of his contract with the current owner and an assignment contract. The assignment contract is requiring an EMD of $5000.

4. The contract between the seller and the wholesaler states that the property will be vacant before escrow.

Are there any gotchas in such a transaction that I need to look out for. How do I ensure that the property is vacant before CoE.

Thanks

[Mitch Messer]

Hi @Asim G. If I were you, I'd want that contract between the seller and the wholesaler to have language that provides for a walk-through prior to closing. If not, I'd want an addendum drafted that does. If property is not vacant, undamaged, and in "broom-clean" condition during the walk-through (as determined by me, the buyer), closing would be delayed while seller either addresses all issues or coughs up some money to cover my costs to resolve the matter.