I had some questions about doing co-wholesaling deals and using the flex option.
When an investor uses a flex option to do a co-wholesale deal, how does one keep the buyer and seller from going around his back and cutting him out of the deal?
How would one prevent from getting caught up in a daisy chain?
When one co-wholesales a deal, wouldn’t it be confusing when the public sees the same property advertised on various websites and other places, at different prices by different people?
Thanks
Pete
What the heck is a Flex Option?
I had a deal last summer that had 4 wholesalers hands in it. The guy that found the deal was from out of state, he contacted my buddy Bob in a nearby town to help him sell it. Bob called me to see if I had a buyer. It was a junk house and we tried for a few weeks, finally got Brad, the out of State wholesaler to lower his finders fee. The 3 of us sent agreements back and forth several times and got them signed agreeing to split the fee 3 ways.
We couldn’t go around Brad if we wanted to, he had the house locked up tight up with a purchase contract.
I found a buyer that paid $23,000 over the purchase price. He was a Realtor Broker and he flipped it for even more profit.
Brad, Bob and I got checks for $7,777 each.
I only seen photos of the house even though it was in my city. We never advertised the house. If it’s a great deal just send it out to your buyers list.
I never found out how Brad found the house from 1100 miles away, he was difficult to work with and at first wanted a $20,000 assignment fee which left no room for us to profit. Bob and I finally got him to realize if he wanted to sell it he wud have to lower his expectations.
Bob and I and his bird dog have another deal in escrow now that will pay out 5K each. Sold to my same buyer, my fear is Bob will steal my buyer and wont need me anymore. haha
Let’s make some Money…
Rando
I will give an example of how this can work;
When a tenant operates a business inside a 10,000 sq ft flex space but is only using 5,000ft of this space, they can sublease and share the other 5,000 feet. (sometimes with no dividing wall)
I hope this answers your question. If you can be more detailed in your question I can get more detailed in my answer 
Fred Myer
Myer Realty
Really, Flex options sounds good, I just call that sub leasing. Reminds me of a few years ago I started hearing the term Shadow Inventory.
Maybe I can invent some clandestine terms for existing RE terms, just to be cool or dorky depending on your view…
A Flex Option is a Non-Exclusive Option to Purchase.
Sellers who enter into such agreements gain the marketing efforts of another dedicated sales driven marketer, who very often has a pre-existing buyers list, or a large investment buyers network. By the terms of the agreement, sellers have very little risk as they are free to continue their own marketing efforts and their only obligation to the optionor is to sell to them on acceptable pre-agreed terms, and/or to notify them if the seller’s own efforts produce a buyer first.
The statutes of frauds make it illegal to offer for sale, or enter into a contract of sale for a property which you don’t own. An option agreement gives the optionor a legitimate and marketable equitable interest in the property, and the right to sell the property subject to the a prior conditions of the option, which must be exercised and closed on, at or prior to the closing of the subsequent sale. The “Flex Option” negotiates the right to resell and places the optionee on affirmative notice of the optioning buyer’s intent do do so.