Wholesaling a Multi Million dollar deal.

[Mitchell Pollard]

Ok. So this is actually my first post ever on Bigger Pockets. I've been listening to the podcast off and on for about a year and a half. Recently, I deceived to start playing he game instead of watching from he sidelines. With little capitol, wholesaling is my first strategy. As I begin to build up I will use the BRRRR strategy to have significant cash flow. As I complete wholesale deals I will pay down my rentals. (All sounds good in theory right?) That's just a bit of information on how I ended up here. That's not the purpose for this post however. While driving for dollars in one of the most affluent areas in the country (Potomac, MD) I found a for sale by owner sign. I called the number on the sign and spoke with the owner. He's owned it for 30+ years and would like to sell the property for $1Million. In this particular neighborhood homes are selling for well over $3Million, some homes as high as $7Million with around the same square footage. The property sits on close to an acre. This may be a complete demo project but there is a lot of equity. Here's where I am in a flux. I'd like to offer the $1Million and tied it up so I can assign it to an investor that I know would love this. Problem is I have no earnest money, no proof of funds, truth is this is my first time trying to wholesale. I am looking for some advice on how to handle this situation. Should I submit an offer with no earnest or proof? (Contract can be valid for 10-30 days) this seams to be the best option I can come up with. Or should I sign a contract with the investor that says he will pay me the agreed finder's fee once he does purchase? Thanks for reading!

[Brian Ploszay]

The first problem that I see is the for sale by owner sign.   If you can tie it up, and get that removed, you're in better shape.  The property is probably a target for a developer, rather than a homeowner.  It probably is an older house in an affluent area.  Database the builders in the surrounding area.  They are your buyers.  PS.   You can hold them off on earnest money until you complete inspection.  Write the contract with a longer inspection and try to extend it.