NC wholesalers

[Corey Grindo]

I am currently an "investor in training" and have spent the majority of my time researching the ends and outs of wholesaling. I am currently located in Raleigh, NC area and intend to start marketing within the next month or so. So, there seem to be a lot of wholesalers that prefer using their own generic contracts to place houses under contract and while looking at the NC Offer to Purchase and Contract I was curious why it doesn't seem many utilize the state contract, considering it is assignable and offers a unique Due Diligence Contingency. My question is in two parts: 1) Any NC wholesalers utilize the state offer to purchase agreement successfully? and 2) Anyone use the Due Diligence Fee and Period as an 'out'?

My thought is to offer the seller compensation for placing the house under contract with me through the use of the Due Diligence fee. This would ensure the Seller is compensated for the time the house is under contract. If the house is assigned and purchased, the fee would be credited to the purchase price at closing. What are your opinions?

[Corey Grindo]

@Mark Brogan thanks for the reply. From my understanding of the contract that is what the Due Diligence Fee is. It is monetary compensation to the seller in exchange for a due diligence period, the said compensation is non-refundable if the option is exercised and if not exercised it is credited to the price of the property at the closing. I definitely will make every effort not to mislead and I feel that using this fee as a method to prove that. The benefit of the due diligence period according to the contract is that the buyer may exercise their option to cancel for any reason, but at least the seller will be compensated for the time. I do not intend to mislead and will utilize this fee to ensure that any property I put under contract is a good deal for all parties.