Do Not Think...Succeed.

Thanks. As a person who has been successful in other ventures, becoming a wholesaler and real estate investor has been scary for me. But I am moving rapidly out of my comfort zone. I have read several of Dean's books and the 30 Days to Real Estate Cash is with me constantly and is outlined, underlined and dog-eared. This website and the amazing DG family and Dean himself have been amazingly inspiring and helpful.

I do have one question that I hope you will answer: Since people don't necessarily do as they promise or things happen where the assignment or double close is no longer a possibility and there is no time to get another buyer in place, is there a contingency clause that that I can use that will allow me to legally and gracefully get out of the purchase and sales contract and save my earnest money without having a bunch of people mad at me including the agent who worked so hard on my behalf? This question is something I really won't ever expect to happen to me, but for the many people like me that are starting out, it is something that every one of us should be prepared for.

I was just looking at Michael in Colorado as he added another $10,000 to his bank account. He has obviously built a lot of momentum and has a lot of people and resources going for him, but he had to start out somewhere to get to this point and this level of professionalism, just like I am. He even mentions faking it until he makes it.

I want to thank you for the great advice above that got me here to ask this question. As mentioned earlier I am tearing down all of the walls of my comfort zone and making myself and them very pliable.

Persistent and grateful.
Patrick

Patrick,

the most crucial thing to succeed in wholesaling a property is to have several buyers on your buyers list; if one of your buyers backs out at the last minute for one reason or another, you always have a backup buyer. You can also look for another investor to partner with, and co-wholesale the deal; that way you can at least get half of the fee, and won't need to pull out...
However, if you do not have a backup buyer, and you need to pull out of the deal at the last minute, then you use your 14 day inspection contingency; all you have to say is that the inspection was not to your satisfaction.
Your agent may get upset with you, but you will still be able to get your EM back as long as you do this within your 14 day time frame.

A common contingency that we use is: "This offer is contingent upon buyer's partners acceptance of the property within 10 business days from the acceptance of the contract."

Using this you can get out of the contract for 10 business days. If something goes wrong such as you do not have financing, your buyer pulls out or you find additional repairs you did not expect you can get out of the contract.