How to purchase from wholesalers with contingencies

[Bryan Venable]

Hey BiggerPockets,

I'm an out of state investor working with wholesalers right now to find deals. I am a new investor and don't have a track record, as such I find that most of the wholesalers that bring me potential deals are new wholesalers. They are responsive and work hard but the reliability of the ARV, repair costs, and value of the location can sometimes be questionable. I want to do my due diligence, but I also want to grab the deal quick. For example, a wholesaler brought a deal to me that was priced at $40K, had an ARV of $110K and needed $30K-$50K in repairs. Well, if it only needs $30K, it's a deal and if it needs $50K, it's not a deal. The only way to know is to inspect it and get quotes from contractors. There is usually not enough time to get that done before needing to make a decision. Is there a process to purchase from wholesalers with contingencies so that if I find out that the property needs more in repairs I can renegotiate or back out and get my earnest deposit back?

Thanks,

Bryan