I have knowledge of properties that are either REO’s not currently being marketed or about to become REO’s, as well as short sales unknown to the general public. I’m interested in dealing with cash investors to finance flipping these properties at a 50/50 split. Would love to know how to protect myself from my chosen cash investor going behind my back and cutting me out of the deal once they have this proprietary info.
Hi,
You could use a "Non Disclosure, Non Circumvention" Agreement! (NDNC)
This agreement makes your potential partner aware you have the intellectual property and the potential investor is acknowledging this and agreeing not to disclose or circumvent your project. Make sure there is a notary space and potential partners sign and notarize this before disclosing the project.
GR
Present a contract offer to potential investors before you show the listing. Put a provision in the contract offer which states their receipt of this listing offer constitutes agreement that closing/flipping to pay you half the proceeds…or whatever else you want agreed.
You could send a contract offer with the listing (certified return receipt for 3rd party witness of delivery) and say buying/flipping the attached listing constitutes agreement (then insert your terms); then give a time frame for sufficient response. When they do not sufficiently respond, certify their non response with an affidavit; now you have a contract via tacit procuration (you might need to look that up in Blacks Law Dictionary)…which you could enforce, either through judicial or administrative procedures.
Hope this helps.
Rob