I don't know about the rules in your state. In Texas, if you intend to purchase a property as a buyer, you can also put "and/or assigns" after the buyer's name. I think a lot of "wholesalers" in every state, tend to get very close to if not out right overstepping the line of essentially practicing real estate without a license. This is not the spirit with which "assignable contracts" are meant. I only write a contract on something I will and can close on no matter what. I do however always make it assignable and for random reasons have wholesaled 4 out of 25 deals in the past 8 months. It is usually a phone call to an investor buddy who needs inventory and I have too much. Or vice versa and they are calling me. Again, all of this is normal, wholesaling with zero intent to buy though, I would imagine in any state is more or less skating by on the technicalities regarding contracts.
Shopping around contracts at a higher price than a seller will accept is more of what is known as a "net listing" where the agent would get any amount of an agreed price. The difference in most cases with an agent is that this is an above the board transaction where the intent of the third party (non principal) in the transaction is made clear, in writing, and governed by rules and restrictions. Again, I know the rules, etc... and that wholesaling, at least here in Texas, is legal. However, it my point is that I believe wholesaling is meant for someone to attach a contract to another investor if they can't or no longer want to buy. Not what we know wholesaling to be currently. The fact that it is an industry within the industry speaks to how the practice has been manipulated. Essentially what we have are "investors" who have no intent or ability to buy acting as agents for the seller in the manner they would if they were providing representation to said seller on what is known as a net listing. Only the seller thinks they have solved their problem.
