Need Help QUICK Buying from a Wholesaler

[Christopher Vargas]

I found a decent property being sold for under $40k. The wholesaler is requiring a nonrefundable $5k earnest money due upon signing of contract. But by email, we agreed to a 3 day inspection period. Does this mean I need to pay the $5k along with my offer and then do an inspection? If so, what happens to that money if it doesn't pass the inspection? I need to get this property under contract quick because of competition.

Or does this mean that I should submit my offer, and then I will be allowed the 3 day inspection period, and then (if it passes) pay the $5k?

The contract that was sent to me has no language of either the inspection period nor the $5k escrow.

[John Kent]

@Christopher Vargas all the terms of your deal MUST be listed in detail on your contract with the wholesale seller. This included how much and who holds the earnest money deposit, where the money is held, and what are the terms and/or contingencies that allow you to or the seller to retain the earnest money deposit in the event of default or dissatisfaction with the contract.

The questions that you have are real estate 101 type issues but require everything to be spelled out. My suggestion is to hire a real estate attorney to review the contract making sure it meets your terms.