Between all the “we buy houses cash” along the roads and all over the internet. It’s important to understand the truth about cash offers. Not all cash offers are created equal.  Find out how to tell if you are dealing with a real cash buyer and how to protect yourself regardless if they are a real buyer or a wholesaler.

The assignment clause

Somewhere in the agreement "and or assign's" or and assignment of contract clause will be in there.  This is one way wholesalers make sure they can assign the agreement.  They don't necessarily have to have the clause or words in the contract to assign it, but it covers them if that is their intent. Not all wholesalers are bad but if that is their intent be careful. 

A buyer with a very small earnest money deposit

Real buyers should be putting a reasonable amount of earnest money down.  Never accept less than $1000 but that is even pretty low.  Somewhere around 1 percent of the purchase price is pretty common.  The more you get the less chance of a buyer backing out.  There's more too it though than just the amount see below.

Escape clauses or refundable earnest money

Look for reasons for them to be able to bail on the contract.  There are usually clauses that give them the right to bail and still get their earnest money back.  They utilize the inspection period to bring their real cash buyers in.  If their cash buyers aren't interested then they can back out and leave you high and dry and they still keep their earnest money.

Long Inspection periods and closing time frames

This is probably the most obvious.  There is no reason for a cash buyer to need 60 days to close unless you didn't want them too. This is a dead give away they are just tying up the property.  Inspection periods shouldn't be more than 10 days and at that point the contract should say after 10 days earnest money goes to the seller.  It's possible to close in a few days as long as title is clear.  Unless you as the seller wants an extended period to close 60 days is not necessary.  It is not uncommon to ask for 2 weeks to 30 days but earnest money goes