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Updated about 7 years ago on . Most recent reply

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Rachel Meyers
  • Orem, UT
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How do I do my first deal with a wholesaler?

Rachel Meyers
  • Orem, UT
Posted

I am just starting in real estate investing and found a decent deal with a wholesaler.  On this deal, there was a $5K nonrefundable earnest money deposit and of course the house was being sold 'as is' - and the buyer would not be able to see inside the home.  There were a few pictures provided.  

I was worried about due diligence - how would I know if the title is clean and how would I know if there were serious problems with the house without a home inspection?  How do you do due diligence in wholesaling scenarios without potentially losing your earnest money deposit and title search fees?  I know I can do a preliminary title search on my county's website.  But, I'm definitely not an expert at reading and understanding titles.  I think the county's information may be missing other judgments and liens???

Would someone be able to outline for me how they would purchase a home from a wholesaler while still doing due diligence?

Thank you so much!

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Antoine Martel
  • Rental Property Investor
  • Miami, FL
911
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2,325
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Antoine Martel
  • Rental Property Investor
  • Miami, FL
Replied

Sounds way too risky for me.

$5k non refundable! What are they trying to hide by not allowing you into the home?

I would wait for a deal that doesnt put your $5k on the line like that. Do a deal where you are able to walk the property and do proper due diligence.

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