Wholesaling Contingency

[Alan Clarke]

I just finished reading this article:

http://www.biggerpockets.com/renewsblog/2006/11/25/wholesaling-real-estate-basics/

“If you end up not being able to sell the property before you are expected to close then you utilize your contingency and walk from the contract.”

I pulled this quote above from the article, I am curious to know how a contingency would read, can someone give me an example of a contingency used in a contract?

Thanks

[Ryan Webber]

In my opinion, if you are a new wholesaler you MUST, yes that is a MUST, have a contingency clause. If you do not you will FAIL. Bottomline.

You have no idea what you are doing when you first get in this business and the contingency clause is your only hope to be able to last to your second deal.

Now can using it hurt your reputation? Depends. Your reputation is not what get's you deals with homeowners. Now with REO's contingencies won't fly very far anyway so that doesn't really matter much either, but if you were to back out of a contract with a realtor then I would say, yes, it could hurt your reputation.

No it is not a good way to build your business. If it is part of your long term strategy to building a wholesaling business then you probably won't go far either, BUT it is absolutely necessary as a beginning wholesaler. You won't make it without one.

Whether its from 2006 or not, I would say Josh's statement is still completely true and relevant to beginning wholesalers, just as it was in 2006.