How can I protect my buyers list when bird dogging for wholesalers or doing a joint venture as a wholesaler with other wholesalers? The reason why I am asking is because the following scenario as an example:
I find a buyer for a wholesaler. The deal is done. Obviously my buyer and the wholesaler will acquaint with each other and most probably swap contact information for future deals. That means instead of the wholesaler contacting me next time for the same buyer, he/she will contact the buyer directly, cutting me out of the deal.
How can I prevent this?
mdelanuez
Good to meet you.
Other then a baseball bat I am not certain there is anyway to protect your interest and I am not suggesting you use one. Maybe create a non compete with the person you sell to…
Maybe the use or modify the following verbiage…
PARTNER NON-COMPETE AGREEMENT
For good consideration and as an inducement for forming a partnership with John Smith, John Smith, the undersigned Partner hereby agrees not to directly or indirectly compete with the business of the Company and its successors and assigns during the period of Partnership and for a period of 3 year following termination of partnership and notwithstanding the cause or reason for termination.
The term "not compete" as used herein shall mean that the Partner shall not own, manage, operate, consult or to be employed in a business substantially similar to, or competitive with, the present business of the Company or such other business activity in which the Company may substantially engage during the term of employment.
The exception to this “non-compete” agreement is that Partner may engage in the business of Insurance Services following termination of the partnership and notwithstanding the cause or reason for termination.
The Partner acknowledges that the Company shall or may in reliance of this agreement provide Partner access to trade secrets, customers and other confidential data
and good will. Partner agrees to retain said information as confidential and not to use said information on his or her won behalf or disclose same to any third party.
This non-compete agreement shall extend only for a radius of 30 miles from the present location of the Company and shall be in full force and effect for 3 year, commencing with the date of employment termination.
This agreement shall be binding upon and inure to the benefit of the parties, their successors, assigns, and personal representatives.
Signed this 0th day of Month 0000.
_______________________________________
Company
Good Luck
Michael
How about a barb wired baseball bat instead? Swing batter swing batter!!
Or you can use what is called a “Show and Sell agreement”
Which basically says that any home that the buyer looks at with X Wholesaler he agrees to pay you X
The key in all of this is laying the ground rules up front prior to the wholesaler taking mental poceession of any moneys made.
Eric,
can you provide some more information on this “Show and Sell agreement”?