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Updated over 5 years ago,
Wholesaling - risk of not finding a buyer
Hey BP - I have been working on setting up my wholesaling business for the past several months now and I have a list(s) of sellers and cash buyers that I am about to start marketing to. Before I do so, I want to make sure that I am prepared for the worst case scenario where I get a property under contract, but I am unable to find a cash buyer to invest. What are the legal ramifications if a deal falls out of escrow and are there clauses that I can put into my agreements to protect myself if this does happen? I have heard a lot different takes on this and wanted to know the actual penalties.
I have made sure to do my due diligence so this scenario doesn't happen, but wanting to make sure that I have all my bases covered. Thanks in advance!