Motivated Wholesaler needs advice for binding contract w/ Seller

[Luke Tran]

Hi everyone,

I'm a novice real estate agent/investor in Las Vegas area. I'm holding a cash amount of $50k but cannot get prequalified for a loan/mortgage because I already have one. I want to experience wholesaling, but is there any way to get into a contract without prequalified loan approval?

For example, can I offer a seller $5,000 EMD just to secure the option to buy the property within 14 days? If I don't get any of my cash buyers/investors to take the contract, I will lost that EMD. Does that sound right?

What are your pieces of advice? Or if you have been in this situation, what did you do? 

Luke Tran

[Ned Carey]

@Luke Tran You can offer $1 for an option. That doesn't mean someone will take it. There are many different approaches to wholesaling. Check out the wholesaling forum for ideas.

As an agent you can simply list the property. That is the best approach if you are an agent. If you do not have the ability to close on a property yourself, you had better be sure that the deal is so good you know you can find a buyer. Leaving buyers hanging because you misled them as to your intentions is unethical.