hey everybody i have a quick question a fellow wholesaler hit me up and said hey i have a property under contract and cant find a buyer if you could run this place across your buyers we can split the profit 50/50… how do i make a agreement where i dont get jipped out the deal and how can i protect myself from him stealing away my buyer?
Have him assign his contract to you, then you assign the entire contracts to your end buyer. In his assign contract, he could put something like "Upon successful closing of the above property, the buyer and/or assignee(s) (which is you), agree to pay the original assignor of the purchase agreement (your partner) 50% of the total assignment fee, of $ ? (whatever you agree on). Of which the total assignment fee amount, the end buyer agrees upon.
And maybe in your assignment fee contract, you can have the same thing. Except, you would only change yours to something like, " the end buyer (which is your end buyer), agrees to pay the original assignor of the purchase agreement , (your partner) and the second assignor (you), 50% each of the total assignment fee. Of which the full amount mutually agreed upon, totaling $ (whatever you two agree on for an assign fee).
Keep in mind, you can come up with an amount, but your buyer may or may not go for the amount of the fee. So, whatever you all agree on is what the total fee will be for you two. After the contract is assigned to you, it’s in your hands. Then, you need to have the buyer sign your assignment assignment contract, as long as he knows your getting the deal from another wholesaler or partner and you need to pay him since he is the one who has the original purchase agreement. At that point, you and your partner can submit wiring instructions to whatever title company will be used for closing the deal.
OR, you could just treat it like a bulk reo deal, where you have a master fee agreement, and (or a sub fee agreement) signed by the buyer.
I hope I haven’t confused you. These are just my opinions, and thanks for reading. I have more ideas, but I’ll save it for another day. :cool
* Dallas
50/50 is way better than zero. What contracts do you already have and do you have a reasonable attorney that can look it over for you?