Wholesaling questions!

[Magan Battle]

Hi everyone!

I recently came across Bigger Pockets and I really am thrilled about the idea of a community of investors coming together and sharing ideas! Me and my boyfriend are both attending a real estate course next month to obtain our real estate license. We're almost finished reading the Beginner's Guide to Real Estate, and we are researching and watching as many videos as we can before we actually go and obtain our license so we'll already have prior knowledge to the Real Estate Investing. I recently have been researching wholesaling since most people state that this is a great way to start out. My only question is what happens if I find a deal and I come up with a purchase agreement with the seller and then I am unable to find a cash buyer to finance the transaction. Is the deal then off? How does that work and what do I say to the seller?

[Russell Ponce]

There has to be something in the agreement that allows you to back out legally. That being said, obviously its unethical to string people along and we should only enter solid deals. 

If you lock up a property you should be able to tell pretty quickly if it's going to be difficult to move. Transparency throughout the process is always a good policy and as soon as I smelled a bad deal I would give them the option to renegotiate price or terminate the agreement. 

Just my two cents and befriending a local investor would go a long way in helping with valuations.