French, what about that the quarterly taxes that are due from members to the irs for withholding?

Yeah unless they signed some form of contract that stated any penalty for bailing, then you are pretty much stuck.Could you withhold some and roll the dice?

@Jack B.Everyone's tax situation is different and for that reason - the title company will not withhold federal/state income taxes on your behalf and remit them to the federal government/state.One thing you may want to look at is if you are required to make estimated tax payments to avoid having to pay a penalty.Your accountant will be able to answer this question.

Otherwise, they are an employee and you should have worker's comp for them; withhold payroll deductions, etc.

I am pretty conservative with what I withhold.

You could guarantee the fee to the realtor whether or not the closing will happen to make sure they don’t withhold potential problems.

disclaimer to BP Nation: you should talk to your tax professional regarding withholding and liability for estimated tax payments to avoid penalties.

I also learned to withhold any rent in escrow from that deal.

There are many ways to wholesale and many of them are in fact illegal in just about every state today (possibly all 50 now), but there are also legal ways to accomplish it as well (with holding a license as just one of them).Let me also make a few things clear to you and everybody else reading this post: Wholesaling is NOT real estate investing, it is a marketing job and nothing more.

He begged and gave excuses why he needed the money and I felt sympathetic.What I Learned: Triple check their work and always withhold some payment until everything is good.Oh, and did I mention he was didn’t have a plumbing license?