Wholesaling with no buyer

[Brian Plajer]

Hello,

  I have heard so many stories about wholesaling to start off and it sounds great but I never hear about the situation when you don't have a buyer and are stuck buying a property that you don't necessarily want. How many of you have had this happen, especially as a newbie, and how did it play out?

[David Ramirez]

Quote from @John Clark:

Quote from @Patrice Blain:

Cancellation during the inspection period must be inspection related. Not having a buyer is not inspection related.

So, how do you protect yourself if you have signed an agreement without a buyer?

From what? One’s own stupidity? You buy the property. You inspect during inspection period. You arrange your buyers beforehand. You put into offer that it is contingent on you finding a final buyer. There’s lots of ways to protect yourself. They are all in your offer terms. 

 Hey @John Clark,  

With all due respect, that's not how it works. It's illegal to promote a contract without having an equitable interest in the property or the right to assign a purchase agreement. You can define the terms of your inspection period in your agreement with the seller. If you have the right language in your contract, you don't have to give any explanation to the seller about why you are canceling or getting written approval from them. But again, you shouldn't be locking up properties without knowing if you can perform on them.

@Brian Plajer, if you don't have experience running numbers for projects or are not sure if you can perform because of not being able to find a buyer, you could instead partner up with a more experienced wholesaler in your area who has vetted buyers already, or you could do a novation.

Feel free to reach out!