Okay, so I have bought property directly through sellers as LTH's and Fix and Flips.
I have never bought a wholesale contract or ever wholsaled a property before. I do know how to both acquire and assign the contract. Even how to record the memorandum of contract in the event the seller tries to contract with a higher buyer after you... does happen. :)
What I do NOT know is, buyer b, (the assignment buyer), is now responsible for fulfilling the terms of the contract in entirety. Close date, DD date, property approval date, etc. How is earnest money or any option money handled. Is it credited back to the wholesaler at closing? Let's say it was high, and 1k earnest money was put down buy buyer a to seller on a 150k purchase price. Then buyer b comes along and offer buyer a 160k, is the 10k assignment fee, plus 1k EMD what buyer a receives at closing?
This on assignment no double close.
Secondly,
If buyer b is to back out of contract, while still in DD period, does the deal revert back to buyer a, or is the whole thing terminated?
Again, been investing for a while, family has, I've even represented as an agent, wholesalers on other situations. Just never personally tapped into the wholesaling field whether buying one or selling one.
Thanks for any info provided. I look forward to the responses.
