The easiest way to get into real estate is to start by wholesaling and co-wholesaling but those have its pros and cons. For example: you are basically a middle man, but if not careful you can easily get cut out of a deal, even by mistake.
A partner of mines bought a property and wanted my help to flip it, she gave it to me at 80k, I marketed it to my buyers at 85k in hopes of making 5k or so, its worth 125k fixed up with 10k of minor repairs needed.
An interested buyer called me to go see it, sometimes a property has a lock box, or its unlocked do to it needing massive repairs and their is nothing to steal so I send my buyers over there to go see it on their own time, OR if its by appointment I will connect them with my partner and they will go show it to them.
BUT sometimes that buyer that I connected my partner with will have one of his friends/partners call up my partner directly as if he was a random caller without saying anything about me, to try and hustle the price down and if he is successful will get the property, sign the contract under a business name and my partner wont know it was because of me that this got sold and I just lost out on thousands of $$$$$$$$.
SO with that being said are their any other better niches out there or any way to stop these sneaky investors from trying to cut everyone out.
Instead of switching out ‘niches’, why not just get better at protecting your deals, and knowing whom you’re dealing with? Just asking.
This has happened to us before. There’s several remedies here. One is not sending buyers to the seller, or partners, but keeping everything close to the vest. I ask, won’t you drive 30 miles to show a house for a fast $5,000? I would do it …twice.
Otherwise, we routinely record a “memorandum of interest” (each county has it’s own name for this document), against every property we contract on. If we don’t close, we must remove the lien at our own expense.
Meantime, once we’ve recorded this document, the seller will have a fat (as in impossible) time successfully shopping our offer.
That all said, any contract to buy is exactly like a short term option to buy. We’re simply recording a notice of this “option” agreement, so that our negotiations remain intact, and our deal remains secure.
Frankly, it’s not often for small operators to record notices like this, unless there’s some suspicion. But with larger dollar deals, it’s more common.
Great Advise, I’ll use your advise to fine tune my business, Thanks again
I would say try to protect yourself better - Sometimes you get screwed over - life is life, get over it and move on, learn from it if you could have done anything different.
In the end, if you have a couple of deals a year where you lose, so what? Focus your energy on getting more deals made and the couple of $$$$ you lose will be quickly forgotten.