Real Estate Investing Forums

Real Estate Investing => Bird Dogs, Wholesaling => Topic started by: 1manflipper on August 25, 2011, 07:43:48 pm

Title: buyers tryin to go around me
Post by: 1manflipper on August 25, 2011, 07:43:48 pm
I have a great buyers list with investors, and they go through me for the deals. There have been times that the investors have tried to negotiate with the banks and go around me, and have failed, and came back to me. Lately I have opened my market to small cash buyers, (people that have recently sold a house in order to downsize),  and they ask me for the address so they can check out the neighborhood. With investors I really dont have too much of a problem, because they know I work hard for them. What can I do to new investors, or clients with cash to not give out the address of my deal?  The last cash buyers I had went around me, and used me for scouting the deal. Ive heard of having  them sign a disclosure, but those can be broken as well. Any help would be great.
Title: Re: buyers tryin to go around me
Post by: Gold River on August 26, 2011, 09:32:37 pm
Hi,

    In 32 years of investing I have never had an investor go around me!

Normally when I hear fellow investors having this problem they are overcharging for thier profit margin!

As an example someone trying to exceed 5 or 6% on an assignment or exceeding 10% on a property you actually bought, control, pay debt service and are "At Risk" in!

With investors? Aren't you an Investor????

Generally as an investor if I am buying a property from a fellow investor I have a buyer for it, as I rarely buy something from fellow investors otherwise! If my profit margin (Mark Up) is kept reasonable the margin is part of doing business!

However if your trying to make $100k on a $50k home and feel like you should make huge profits at the exspense of buyers then you will find your potential buyers insulted, offended and feeling miffed at your implied deserving to make these huge profits!

As an investor whether buying from a fellow investor or buying from a bank lender or private party I still have to purchase at least 30 to 35% minimum below FMV / ARV so wholesaling / flipping has a very limited margin but potential to move quantities of properties every month!

What I don't hear from you is that your wholesaling / flipping to owner occupied buyers as this is 80% of your potential market and you should not care whether a owner occupied buyer gets a "Smokin Deal" as long as you make your profit, but an investor severely limit's his self selling strictly to other investors!

There is no need to use a ND/NC (Non Disclosure / Non Compete) agreement as your buyer has to know the property address to buy your property!


                   GR
Title: Re: buyers tryin to go around me
Post by: 1manflipper on August 26, 2011, 11:47:22 pm
Iam a wholesaler, and I dont have a problem with other investors that are cash buyers going around me. I work hard for my investors and they know that, I do almost 100% of my business to just them, and I usually only deal with that sort of buyer. HOWEVER, lately in my market, there have been alot of homowners selling their homes to pay cash for another in order to downsize. They contact me, I find the deals through bank owned or private, and once they get the address, they take over with negotiating behind my back.  Ive had this happen once before, and Iam starting to think I should just stick with my loyal, cash buying investors. I do not overcharge, Ive been told I dont charge enough. I do around 3 deals a month to investors and I have a good repore with them.
Title: Re: buyers tryin to go around me
Post by: Gold River on August 27, 2011, 12:48:43 am
Hi,

    How in the _ _ _ _  does someone go around you if you have a contract on the property? I don't understand???

You asked the question but don't take the answer personally as it's generic and I don't know you!

Every single property I move I have a contract on, escrow opened and earnest money deposited! There is no going around me as I own the contract and control the property!

What kind of Wholesaler finds a good deal, but doesn't contract it and control the property????

Please tell me as maybe I am doing it all wrong???


                  GR
Title: Re: buyers tryin to go around me
Post by: 1manflipper on August 27, 2011, 02:35:32 am
I think there are two situations then.

1) I always line up my end buyer first, and I have a nice buyers list, and like I said, I usually deal with my investor group, and I know what they specifically want, so I DONT have a problem putting up the money to put under contract, because I know they will buy, and Ive worked with them on alot on deals.
2) I usually dont deal with 1st time cash homebuyers that arent investors. I dont think putting numerious properties under contract with the banks on hopes that they might purchase is a smart thing in my market.  There are alot of tire kickers with cash. The banks dont want contingencies, and I would have to put more money up with a chance of loosing it.
3) I think I will just stick to my investors that I work with on a monthly basis. thanks for your help.
Title: Re: buyers tryin to go around me
Post by: TheTitleGuy on August 30, 2011, 06:51:08 pm
Hi,
If you are going to be showing the buyers properties that are still listed, you should get your realtor's license so you at least have recourse on the agent's commission if they do go around you.
If you don't want to do that, I would suggest only showing them other wholesaler's properties that are also already tied up. Mark up the property to your buyer, they will still get a great deal, you will make more than being a realtor, and they won't be able to go around you. Just a thought.


Best Regards,
Michael
Title: Re: buyers tryin to go around me
Post by: xpandergt on September 02, 2011, 09:05:19 pm
I have a great buyers list with investors, and they go through me for the deals. There have been times that the investors have tried to negotiate with the banks and go around me, and have failed, and came back to me. Lately I have opened my market to small cash buyers, (people that have recently sold a house in order to downsize),  and they ask me for the address so they can check out the neighborhood. With investors I really dont have too much of a problem, because they know I work hard for them. What can I do to new investors, or clients with cash to not give out the address of my deal?  The last cash buyers I had went around me, and used me for scouting the deal. Ive heard of having  them sign a disclosure, but those can be broken as well. Any help would be great.

The buyers who try and go around you should be cut from your buyer's list. The fact of the matter is that they don't appreciate the service you are providing. If they are willing to be so cut throat to save a few dollars and single you out, they aren't worth doing business with in the first place. There is nothing you can do to stop a buyer from trying to go around you.