Question about Wholesaling

[Itay Peer]

I am came across a wholesaler who is asking for $5,000 earnest money on a property. There will be a group walk through in the property, but there is no possibility to do an actual inspection prior to purchase or even after offer is accepted. Is that common practice? 

Thanks!

[Jon K.]

@Itay Peer Common enough. Most wholesalers get properties under contract with no contingencies and that includes inspections. If the property is currently occupied it requires effort on the wholesaler's part every time the coordinate a visit by an interested investor. I've deal with wholesalers who do one group walk-through for a property as well as ones that just do an open house for a certain number of hours on a certain date and that is enough to get it assigned. Others sometimes (more often these days) assign it simply by taking a thorough video. They are just being efficient with their time.

The amount of the earnest money request is also reasonable in my opinion.