wholesaling deal questions

[Jordan Ashbaugh]

Hi, 

I'm currently collecting all the info needed to do my first wholesale deal.  

When making a deal with the seller do I put the Ernest money up front to get the deal going?  

If so what's the typical amount when dealing with a non listed house? 

Not sure if it matters but the homes I have on my list range from $50,000 to $200,000. 

any additional tips would be amazing! 

Thanks!

[Charlie MacPherson]

@Jordan Ashbaugh You're not going to like this answer, but it's the truth.

What you're doing is called "Unlicensed Real Estate Brokering".  It's illegal in almost ever circumstance. You'll find your activities covered under GA Laws 530-02-01.02. (https://rules.sos.ga.gov/gac/5...)

If you put the property under contract without both the actual intent and the ability (funds) to complete the sale (actually buying the property under the terms of the contract you wrote), you can be sued for "Fraud in the Inducement" (a tort). 

That means that you convinced another party to enter into a contract when you knew you could not fulfill your obligations (actually buying the property) under the contract.  The fact that you intended to assign the contract is no excuse.

Your next problem is that the contract was created for an illegal purpose, i.e., unlicensed real estate brokering.  That means that the contract was void (not just voidable) at its inception. 

The moment you wrote it, that contract was completely invalid.

Please stop listening to the lying, money-grubbing gurus who are telling you that the law does not apply to you.  IT DOES.

If you want to get into selling real estate the right way, get your license like tens of thousands of others have before you.