I would be brought before the real estate commission if I spouted out values that are often off by 30-40%How many deals would wholesalers who operate in this manner do if they had to be truthful an tell the seller :Hi Mr Seller, I don't have the money to do this but I can offer you $X for your property, tie in up so you can't sell it, try to find a buyer, at a higher price of course, and I will even forfeit the $25 earnest money when I can't find a buyer.  

Hey thanks for the reach out but my buyer agreed to pay me $7K to forfeit my assignment fee

My experience is that yes i can get out of the contract but will forfeit the deposit money for sure. that is the only thing they can do to u legally, my experienceDawn Matze

Both of us are on the mortgage as of now ..... and from what I understand, I am forfeiting any 1st time homebuyer credit by doing this, but we felt it was worth it as we plan to live in this home for a few years and it felt right.Question:  What would you do with the paid-off single family home worth $550,000?

You sign the purchase agreement with the seller, BUT you absolutely should have an attorney review first, especially in a wholesale situation, or there's a fair chance you are going to have your deposit on the line when the assignment provision or some due diligence provision or something wasn't properly negotiated and you can't get out of the contract without forfeiting your deposit.

If the buyer cannot get financing during that period or does not have enough cash, then they will forfeit their initial deposit and be out that money.

If they don't sign it withing 72 hours (or whatever you require) then I may call it a default, they forfeit the deposit, and I put the property back on the market.

If purchaser defaults, deposit may be forfeited and property resold at the risk and cost of the defaulting purchaser who shall be liable for any deficiency in the purchase price and all costs, expenses, and attorneys fees of both sales.

He also didn't give a full 30 days notice, I'm not going to take his full deposit, but because he didn't give 30 days would that forfeit his right to the security deposit if he tried to fight the cleaning fee?

There are two tax disadvantages to an LLC real estate holding company: owners still pay self-employment taxes, and if the property had ever been a personal residence, the IRS capital gain exclusion is forfeited.