Risks of Going into Wholesale Contract

[Michael Pruitt]

Hey all, 

I'm wondering what some risks are that some wholesalers have encountered specifically related to their contracts? Have any wholesalers faced consequences due to missing clauses that they should've included retrospectively? What are general risks when putting a property under contract, legally and otherwise?

[Assaf Furman]

@Michael Pruitt Since a piece of paper with a few clauses and signatures can be considered as legally binding, there are many risks taken by either side if they don't know what they're signing on. Simply put, if you don't know what are the legal consequences of what's written as well as what's NOT written - you're exposed to a legal action. 

Other than being sued by the person you're dealing with (buyer or seller), the consequences wholesalers may face are to be chased by the states' department of real estate for breaking laws.