The Risk

[Max N]

All,

I was looking for some light on the contract between the seller and the wholesaler.

My understanding is that you agree to purchase or assign the contract for the house from the seller.

Well isn't there the risk that you may never find a buyer and then legal obliged to purchase the property?

Thanks,

Max

[Bill Gulley]

Which is why you should use an Option and not a sale contract and disclose the situation up front, then you avoid these issues.

Yes, that may mean you have to come across more professionally, explain why you can get the deal done quickly at an agreeable price. It means you probably can't fill the owner's ear full of lies or deceive them into thinking you are writing a check for the purchase. It means you don't need sneaky little exit ploys to bailout when you fail. If you're not careful, you might even be seen as an ethical operator, one who is up front, deals in compliance and in good faith, heck, if all wholesalers did that they may even change the reputation and outlook on the business! :)