What are the Potential Risks to Wholesaling?

[Nathan Witte]

I have started looking into wholesaling as a means to helping me fast track my savings goal and help get experience within real estate investing. I understand that wholesaling gives people with little money, extra time, and drive to  be able to opportunity to enter the business of real estate investing. From what I have been learning so far, it seems very possible to do at a young age, but what are some of the potential risks of wholesaling a property? When would a wholesaler become liable within a transaction. For example, when wholesaling, once a property gets under contract, who pays for contractors and title searches and other due diligence expenses? Any additional information on the topic would be absolutely great! Thanks.

[Bryant Brislin]

I'd suggest teaming up with someone who knows what they are doing and can see around corners to avoid lawsuits, wasting seller's time and wasting your time on deals that may not work. Also, I feel like there is a myth that someone can make tons of money wholesaling just by dabbling, putting in maybe 5 hrs, 10 hrs, a week. It's a full-time job, it's the same as saying you want to open a restaurant.  So if you already have a full time job, kids, etc, then it may not be something you realisticaly have time to do.  If you only have, let's say, 20 hrs a week to put towards it, then even more, you may want to team up with someone who can find a role for you where you can do something with the small amount of time you have.