Online wholesale

[Alicia Brown]

Hello, Newbie here 

     I would like to know is it possible to do wholesale deals over the internet. Like if you are in another state and the seller and buyer are in a different state from you. Can a co ttact be typed up and faxed or emailed maybe mailed, or is that to risky and its best to stay local. Thanks

[Matt Schelberg]

If you are the wholesaler I think it is safe to assign to someone out-of-state provided you do the usual due diligence...confirm ID, confirm proof of funds and include a clause in your assignment agreement that the deposit must be received by a certain date. However, states take different approaches to wholesaling, so if the property you are trying to wholesale is out-of-state you should check the local laws to ensure you conduct a legal transaction, especially if you are planning to scale this idea.

I would be less concerned about contracts being faxed or mailed...perhaps someone will correct me, but I don't know of anywhere where faxing and emailing contracts is a problem.

Other Downsides:  I expect the default rate for out-of-state assignees is higher than local assignees. So consider requiring a higher deposit for an unknown out-of-state assignee.

I once assigned a contract to a guy from the UK. He was thrilled about the deal and sent me his $500 deposit with the property sight-unseen. He had never even visited the city (Baltimore).  Long story short, he visited the area before closing and promptly announced that Baltimore was a war zone compared to London, and that he was bailing.  I should have required a larger deposit to ensure he was committed.