Here
is the lesson: always get a nonrefundable deposit from a wholesale buyer. Here is why: Last April/May, I had a property under contract. I had the seller locked in and had a buyer agree to purchase the property. With two days left to closing, the buyer balked and I was left to clean up a mess.
The reason this is such an issue is because the seller needed that closing money to be funneled back into escrow as the down payment for a new place. So, it was a domino sale. It was important money funneled from one account to another account.
So, needless to say, that buyer bit the hand that fed him and he is no longer on our wholesale list. Now, I ask for a $5,000 nonrefundable deposit, which goes towards the purchase at close, and this has kept the wheels greased.
Don’t be afraid to ask for a deposit! If they won’t put down a deposit, find a buyer that will.
