I don’t know if this happens or not. But how can you prevent a buyer from cutting a deal with the seller of a property you have under contract and cutting you out of the deal??
You can file an affidavit with the county and put a cloud on title and immediately do an escrow with the seller, and then if someone interferes you can sue them for tortuous interference and no one I know has lost a case. They can buy you out if it’s that much money.
Every once in a while you run into a backstabbing investor, I know of one who did it to me and my brother, and then after we warned him he did it again. Seems he has had trouble with his right knee for the last 40 years now. Seems he was attacked by a couple of guys. But it wasn’t us, we were out of town when it happened, must have screwed the wrong person.
NICE!!! :beer
most investors will not do that. I understand that this may happen from time to time, but most investors realize they need to work with wholesalers to pick up cheap properties.
I also recently found about this but I think is too much work. However, if it is a slamming deal then I would have no problem doing this.
It does happen occasionally - since there is a cost to file the affidavit with the county, we usually don’t do it on a typical deal, but if there’s a nice fee on the line ($10k or more) we usually will take the time and incur the cost to protect our deal…
We also usually double close those size deals as well…