Hello I have a question lets say perhaps you our partnering up with another wholesaler he has a buyer to bring foward to one of your properties that you have under contract. And you agreed to pay him a percentage. My question is what contract would you use with that wholesaler?
you can use a compensation agreement or just assign the assignment again
Flex option Aye? where to get one of those?
As for talking to buyers about your wholesale property, just be honest and tell them what you are doing and how you make money “with your assignment” most savvy investors will already know how you make money if you tell them your a wholesaler. If your nervous about talking to investors that’s normal when your first starting out, don’t worry about it tho. Just focus on the conversation, be honest, and speak what you know and above all NO BSing
p.s. that second part was meant for a different thread
This question couldn’t have came up at a better time! Contacted a buyer to “profile” them and get a feel for their preferences,finances, etc. He mentioned a property his company has been holding onto, gave me the address, and even the lockbox code. It has a realty sign in the front and he said they are no longer listed with the company, just havent removed sign yet. He suggested 2 options, we can partner and I provide buyer, or we get it contracted then do our assignment to our buyer.
The question is this, I have been told by a fellow investor to never reveal my contacts because eventually I will have lost out on a buyer. So is partnering allowing my seller to meet my buyer? And if so, how can I protect from?
Another question is, how will split offs work if we were to go through with a partner deal?
Also, am I allowed to go inside the property without some sort of document? We only talked on the phone and I got lockbox code. Can I get into trouble by going in?
Being transparent and well documented in writing are always the best practices in any real estate deal.
Let the seller know that you have to go by the property with a potential investor/partner or that you are sending someone there to inspect the property. As far as partner split, it depends how much the partner is involved with the property: if the property needs work, and the partner is just putting up the money, that is only fair that the agreement will favor a split in your favor.
I agree about keeping all the parties separate though as much as possible: don’t have your buyer meet the seller or the investor if at all possible. Some times it takes some juggling around, but it protects you from losing future deals.
Thanks for the response Laura! :biggrin
Is the proper contract the Flex option? As far as this property, the owner gave an option to partner on the deal, while I get a finders fee. Or the second option for me to contract the property to eventually assign it over.
Do you know if the flex option will keep all parties separate? Will the normal assignment process keep all parties separate?
The right partnership agreement can get complicated. You have to name each partner, each business, terms, who can withdraw capital and etc. remember that each partner entering into the partnership your agreement must state the costs each partner will invest into the partnership for your investment.