well im new to wholesaling i am about to get my first house under contract with a realtor. now the realtor is asking 1k deposit, and proof of funds. has anybody done a wholesale using a realtor? can someone explain the process?..
The realtor is asking for an earnest money deposit for three reasons: (1) He/she was taught to do that, (2) To be sure that you are committed to the purchase, and (3) To show the seller that there is the possibility of a sale.
The proof funds is basically the same with the addition that the realtor wants to know if you have the financial backing to go through with the transaction.
A deposit (consideration) is not required under contract law for an offer but some sort of consideration is required for the purchase.
I am a realtor that has done alot of wholesale deals and if you do things right it should be a non issue simply put an inspection clause in the contract and have the earnest money due after you released the inspectioni contingency. During the inspection period get your investors through, if they want it, get a non refundable earnest money check from them then use it as your own. There are ways to get around the verification of funds as well.
Eric Medemar
I am in need of business insurance. I am in Cleveland, OH and will be wholesaling. What is my best option for covering my personal assets? Where should I start?
Question…if this is a cash deal, as-is, then does the inspection clause still apply?
why do you need business insurance you dont need it to wholesale