Getting into wholesale

[Danny Day]

Looking to get into wholesale. I'm trying to break my way into the pre-foreclosure / foreclosure market and need some start up capital. I figure if I wholesale a few deals I should have some cash to play with. I had a few questions regarding wholesales.

From what I can tell, a wholesale plays out like this:

I have a list of investors, who know I am a wholesaler.
I find a house for sale for $25k
I get this house under contract for sale to me for $25k
I let my investors know I have a house for $35k
Dual escrow with a title company
Close deal for $35k
Profit $10k

Just wondering now how someone would feel knowing I put $10k in my pocket for doing nothing. How does that usually go with the dual escrow?

Do you have to disclose what you got the property for? When you plan to put a house under contract, do you let the owner know you will be wholesaling their house?

What kind of cost is associated with a transaction like this

Thank you for your time

Danny