Wholesaler's contract - non refundable deposit?

[Aly W.]

I have an offer in with a wholesaler on a property he already has under contract (short sale), and the bank has a BPO. The wholesaler said if we come to an agreement and sign a contract, he will need a non-refundable deposit made out to his title company. He says we would need to use his title company, as that is how he structures his deals.

I didn't yet ask what the terms of non-refundable would be, or how much he is expecting, but I don't like the idea and I can imagine my attorney's reaction to that. I've only dealt with realtors before. Of course I would have an inspection contingency in the contract and I could also object to the entire thing, but is this typical for a wholesale deal? Is there an existing thread someone could point me to?

Thanks!