One huge RED flag when buying investment properties / wholesale real estate deals. They will keep your earnest money, in the fine print it shows not refundable to lock the deal down. So be careful.
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Discover The Loopholes when Buying Investment Properties
We already discussed how to fill out a wholesale contract template. Now, we are going to give a closer look at the loopholes in the contract. These are ways to get you out of the contract, to save you from losing money or being harmed in any way due to last-minute changes.
Loopholes In A Real Estate Wholesale Contract
Let’s name 3 big ways to get you out of a contract in one piece:
- Option period. You can back out for any reason. Make sure to put as little money as possible there.
- Seller disclosure. If seller never disclosed something important or gave you a required documentation, you have the right to back out of this deal unharmed.
- Title commitment. You can always use this clause when still on time to get your earnest money back in case you figure out this deal won’t go anywhere.
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