First wholesale deal

Bird Dogs, Wholesaling
1

Long time no posts, I am looking at a property that the seller has on the market for 105k but giving the buyer a 10k allowance for repairs, the house needs about 40k in repairs total.

I am thinking of puting it under contract and offering 95k without the 10k for repairs. and in the contract I want to include a clause to where I have 30 days to descide and for whatever reason Im able to back out, but I dont want the buyer to think im just full of b.s…
ARV of about 190k
the realitor told me we would have to do a double close and I told her NO…she also said that the investor would have to agree to pay a 1000 contract fee to the realitor for commision has anyone heard of this…how would one put a deal together like this…Im just confused a bit about how it all comes together. please help.

2

A lot depends on your exit strategy. Are you just flipping it to another investor? If so, then you probably want to look at assigning your contract for a fee, then you don’t have to worry about a double close. I’ve never heard of a realtor getting a commision if you assign your contract.

I also believe that you should not have a “weasel out” clause. Think of it from the seller’s point of view. You’re tying up their house until you change your mind. When you write a contract expect to go through with it. If you can’t flip it to another investor, plan to rehab it or get rid of it another way.