Advice in a wholesale deal

[Valeria Acosta]

Hey guys! 

I've been wholesaling for a year and to be honest it has been pretty good barely any complications until now. I recently put in an offer for a great home in a great area i was able to negotiate it to the price i wanted it for and it was accepted. The rehab is around 40K and the AVR of this property is no less than 700K. The only thing is that this client wants Ernest money to be $20,000 non refundable to be held as liquidation damages. As much as i tried to negotiate with him i wasn't able to get rid of it. So my question is, would this be a good deal to wholesale ? It's a a little risky from what some of my RE associates have told me, but i want to get more opinions and maybe some advice from people that have dealt with a similar situation.