Hi,
I’m hoping someone can help me with this…I have a distressed homeowner ready to sell at a deep discount. I have investors interested who want to see the home, but my question is how do I keep the investor from offering the seller a deal and screwing me?? Do I go into contract with the investor too? Or do I have to go with each investor to the home?
Please advise…
Are you bird dogging or wholesaling?
If you are bird dogging, write up a contract and have investor (s) sign before you give him the information.
If you want to wholesale, then just put the house under contract.
If it’s a good deal and you have multiple investors lined up by all means wholesale it to make bigger profits.
To me the hardest part of this game is finding the deal, so why not get paid “big” for the catch?
I once got screwed over for a bird dog fee but found out the investor was in a Rei club so I called him and told him I expect my check or I am going to show up and let the word out, next day I had my money in hand.
Reputation is everything in this biz.
Most wont screw you over, but there are some el lamo’s out there.
Thank you so much!! I will be sure to go into a basic contract with the investor.
I signed a contract with a homeowner this weekend. He said I was the only one who left a deposit and a contract. I did this to buy more time. Sheriff sale was today. By surprise, I was at the court house for other reason and bumped into the homeowner who met an investor and claiming they had a contract in place before me. (which I found out was not true). From the homeowner’s view, I can understand why he will accept highest bidder. But how can we as investors protect ourselves and assume we have a contract in place when these homeowners are signing contracts with other investors? ???
This is something an atty should answer. But in business-speak, all you need is a “NDA” or non-disclosure agreement. Draw up an agreement with the investor stating he will under no circumstances, for a period of one year, involve himself in any transaction of any property within the state, that was brought to him by you. Get it in writing and ideally, have the agreement drawn up by your lawyer. Next, when you introduce him to a property, have another document stating the address and physical description of the property, and that he states he has no other interest in said property and furthermore, will not disclose your deal to any other parties without your permission. You could still get screwed but this will diminish the liklihood. As your network grows, you will not have to worry about this.