due diligence on wholesale deals

[Anthony Marquez]

Hello everyone!

So i was wondering if anyone out there with experience buying from wholesalers can give me an outline of the due diligence items they complete when looking at a deal from a wholesaler? I understand what a wholesale deal is (person puts a property under contract with a seller for a price and sells/assigns it to a buyer/investor for a markup/profit), however what type of due diligence do people do on these contracts? Like, How do you verify a wholesaler actually has the property under contract to sell (meaning the owner of the property/note has actually signed the sales agreement with the wholesaler)? What if you are dealing with someone with a deal from an asset manager? Do you typically put an EMD down, and if so, do you use an escrow account or something to prevent them from cashing and walking away with your money? Any insight would be greatly appreciated!