Backing out after under contract

[Kayla Palmieri]

Hi! Me and my dad (contractor) are looking to get into house flipping. We took a course recently and one of the main points the guy stressed was to just "get the house under contract" asap and then do the inspections and any other due diligence after. Things are selling SO incredibly fast where I live so this makes sense. The only thing we are a bit confused on is he said you can simply "back out" of the deal if you change our mind...but how would you just "back out" of the contract if there is nothing actually wrong with the home? Would you lose a large chunk of money? The instructor was not very helpful so I figured I would ask here!