I NEED HELP WITH A WHOLESALE PURCHASE

[Myriam Jacques]

Hello all,

Here is my situation. I found a wholesaler who's selling a duplex that needs to be rehabbed for 75k. The property will need about 25-30k in repairs, and I am ok with the numbers. My situation is this the wholesaler is closing on the property on 9/15/09, he said we need to submit a contract with a non refundable deposit of 5k. What gaurantee do I have that he will close? Why shpuld my deposit be Non refundable? Can I ask to see his contract with the seller?
I need as much help as possible on this.
Many Thanks,
Myriam

[Jaime Vasquez]

I have been involved in a similiar transaction. The wholesaler wanted 10K non refundable if we didn't perform. We just made the title company hold the cash in escrow and would only release it to the wholesaler if we didn't fulfill our end of the deal. It worked out fine. I would say if you hand him the check, you must be OK with never seeing that cash again. on the wholesale/birdog end, I always got paid after the keys were in the buyers hands and the cash in the sellers.