Non refundable deposit

[Jason Henry]

Hello biggerpockets, I have a question here that I was wondering if anyone could help me with. How many times does a wholesaler gets pays? Do they sometimes ask for their profit upfront when they ask for their deposit? Is it possible to get 10k upfront? 

If anyone could comment and let me know I would gladly appreciate that, thanks. 

[John Hyatt]

Hi Jason, Usually wholesalers either do a double closing or an assignment. There is no rule saying you can't get a non refundable deposit (at least I don't think there are laws against it), but as an investor that would be a hard sell to me. I know a wholesaler down here in AZ who requires $1,000 EM to open escrow (first come first serve), but again that's refundable assuming the deal doesn't go through. The reason I would have a hard time with non refundable deposit, is what if the seller "changes their mind" and doesn't want to sell? Non refundable you can pretty much make up anything and keep the money. -John