Good wholesalers show their math, close through licensed title companies and welcome inspections. Bad ones sell urgency. The vetting takes twenty minutes and it is the highest-ROI diligence in real estate.
KEY FACTS FROM THIS GUIDE
- Earnest money belongs in title company escrow, never a personal account
- Assignment fees are paid on the settlement statement, or they are not legitimate
- Texas Prop. Code 5.086 requires disclosure of equitable-interest assignments
- An owner title policy covers forgeries, missed liens and chain-of-title defects
The three structural tests
One: which title company handles closings? Call that company and confirm the relationship. Two: does the deal package include the comps and a line-item repair scope? Three: is earnest money held in escrow, not by the wholesaler personally? Any failure is disqualifying.
Check the track record
Ask for two references: an investor who bought from them and the title company officer they close with. New operators can still be good, but then the deal terms should carry the trust: longer inspection period, smaller earnest money.
Audit us with the 3-question check, then decide. Written numbers, licensed title company closings, zero pressure.
Read how they handle your questions
Professionals answer number questions with documents. Amateurs and worse answer with pressure: the fake second buyer, the tonight-only price. Anyone who discourages your contractor from walking the property is telling you what the walkthrough would reveal.
Verify the contract chain
Ask to see the underlying purchase contract (with the seller’s price visible or redacted, both are common). What matters is that it exists, is signed, and has not expired. You are buying that contract; confirm it is real.
Join the free buyer list here to get matching deals first, or book a free call and tell us your criteria directly.
