can someone give me advice on this

[focusonmoney]

First let me start with Happy New Years to all.

I have question, i talked to a person today i know that work in the loan department . Hes telling me that he has a property right now thats going to default but before he tell me any info, i have to cut him a certified check for $5000.
Does that price sounds to high ? and remind you that im a wholesaler..He told me that we will have to sign a contract together stating that this check is contingent upon closing on 123 main st..  

How does this sound to you? Who should hold the money ?   Thanks for the help..

[BoboTheKing]

Giving someone money for just information....not even knowing if you will buy...not even knowing if it is good info...is insane. Don't even consider it.

[focusonmoney]

Hes telling me the check wont be cash until closing..  Does this seem like it would be a good deal?

[BoboTheKing]

In my opinion, giving someone a certified check without knowing if you will even buy is crazy. If he wants to protect himself and make sure he gets his money if you do buy, you and him can always sign an agreement stating that you will give him the money if and only if you close. It just seems crazy to me to hand someone a certified check beforehand...knowing that there is nothing at all stopping him from cashing it. I can't speak for anyone else, but I wouldn't even consider it.