Five Things That Would Make You Lose a Wholesale Deal.

In the real estate wholesaling market, knowing what “not to do” and what “to do” is essential. Getting real estate wholesale deal is a great way to start your real estate investment journey. However, there are particular things that if you do (or don’t do), they can add or subtract from your bottom line or even break a deal. While a wholesale deal may seem headed to closing, there are many ways that deal can end unsuccessfully. You need to note that every seller is different and so is every deal. To help you have a successful wholesale deal, you need to be cautious and avoid small mistakes that would jeopardize the deal.

Below are five ways in which you can lose your wholesale deal even after signing a contract.

Failure to Verify All Signers

Verification of the signers is very important. You need the signature of all the owners of the property for the deal to go through. Ask the property owner for any other person or people who have an interest in the title deed or property. However, it is important to do thorough due diligence because there are sellers who do not give a sincere response. The deal may stall if you don’t get all the required signatures.

Tenants Denying Access

There are different encounters, both good and bad in wholesaling. In your contract, it should be stipulated clearly that you need to access the property during the inspection. While it is mandatory, some tenants don’t easily allow strangers in their property. It is good to have the phone numbers of the tenants so that you can talk with them directing instead of leaving the task to the landlord. Build rapport with the tenants by giving them gift cards thereby minimizing tension.

Liens on the Property

The seller always has to produce a clear title before the transfer of the real property is done. It is recommended to have your attorney conduct a title search prior to the closing of the deal. While it’s not always the case, there are sellers who try to transfer a property with liens. For you to close the transaction successfully, the property should not have liens.

Poor Communion During the Wholesale Deal Process

Poor communication can easily kill a real estate wholesale deal. As an investor, it is good to be reliable and never work with assumptions. Though not a requirement, walking the seller through the contract will help avoid problems on the end of the deal. Ensure the seller clearly understands the contract process, inspection period, purchase prices, Arles deposit procedure as well as the close of the Escrow process.

Seller Getting Cold Feet

It is good to understand that not every deal you put under contract must make it to the closing table. You obviously don’t have control over the seller. Sellers easily change their mind especially if they are emotionally attached to the real estate property. Try to find out why the seller has cold feet and get an amicable solution to it. However, there are other sellers whom you have to be more aggressive and inform them of the legal implications. You can have your attorney contact them and get the ball rolling.