With a CFK agreement, I would want them to cancel the existing L/O, forfeit the deposit, and waive any right to pursue recourse going forward.

After repair value will be $110,000.However, I originally thought rehab costs would be $15-$20k and now I'm starting to get cold feet with the idea of parting with $80,000 of my own cash.Do I have a great deal or should I forfeit my $500 earnest deposit and walk away and continue looking?

They did not pay last months rent and just moved out forfeiting the deposit.Thanks,Chase

Again, check with your state as I think some may have certain laws about how you can use the security deposit regardless of what you have in the lease, but Aly is doing the same thing I do in my leases.I specify the security deposit cannot be used as rent and I also specify that failure to give appropriate notice (60 days if within the lease and 30 days if they are month to month) they forfeit the security deposit as well.

Are your deposits forfeited?

That way if your end-user buyer walks, you would forfeit your $1,500, but still make $1,500 for your time and effort, even if the deal falls apart.

The wholesaler wants no risk and to put the seller in a horrible position and forfeit peanuts in earnest money ( 10,100 bucks etc.).

Some have had success forfeiting their foreclosure rights instead of personal backing.If in fact they want the LLC to qualify financially then find another bank to refi if you can because that is not common.

Not an atty, but it doesn't get applied to the purchase, until purchase...and doesn't get forfeited until buyer fails to exercise.

If he fails to close, and then assigns the sales contract back to me, would his $10k still be forfeit, or would he get his money back and I would be on the hook for the $10k?