Wholesaler to Wholesaler question

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Wholesaler to Wholesaler question

Greg P.
Los Angeles, CA · Member since 2009 · 717 posts · 50 votes

Hello. I have a question regarding working with another wholesaler. If I'm the wholesaler who is bringing the buyer into the deal, is there some kind of contract which states that the other wholesaler isn't able to take my buyer for future transactions? This buyer is very serious and I put in a lot of time to find this buyer. Does this kind of contract exist? Thank you all.

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Brian P.
Wholesaler · Salt Lake City, UT · Member since 2009 · 1k+ posts · 401 votes
17y

Greg

There is no such binding agreement that will allow you to lock up a buyer for the future or prohibit a seller (wholesaler) from doing business with the buyer in the future.

This would be like a Realtor claiming rights to his client for the next umpteen years after a transaction was completed, it isn't going to happen.

Loyalty is one thing, forced loyalty doesn't exist and isn't enforceable. Investors are free game and calling dibs is for the playground.

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  • Brian P.
    Wholesaler · Salt Lake City, UT · Member since 2009 · 1k+ posts · 401 votes
    17y

    Greg

    There is no such binding agreement that will allow you to lock up a buyer for the future or prohibit a seller (wholesaler) from doing business with the buyer in the future.

    This would be like a Realtor claiming rights to his client for the next umpteen years after a transaction was completed, it isn't going to happen.

    Loyalty is one thing, forced loyalty doesn't exist and isn't enforceable. Investors are free game and calling dibs is for the playground.

    4Reply
  • Jeff Warner
    Real Estate Investor · North Central Arkansas · Member since 2009 · 509 posts · 178 votes
    17y

    I agree with Brian. Investors that are actively looking for deals are going to buy from multiple sources anyway. All you can and should be doing is supplying as many deals as you can to him.

    Jeff

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  • Demos Loizides
    Real Estate Investor · Dale City, VA · Member since 2008 · 317 posts · 77 votes
    17y

    I use flex option to purchase agreements. It at least allows me to market the properties and says how much I will market them for. The other wholesaler knows how much my assignment split will be.

    1Reply
  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    17y

    Greg,

    The best way to do this is sign a non circumvent agreement with the person who has the property. It basically states that you are bringing a buyer and the are providing the property and that you will make X% of the sale.

    This will protect you from what your worried about.

    Curt Davis - KAIZEN Realty538 Reviews
    WebsiteView Page
    1Reply
  • Jeff Warner
    Real Estate Investor · North Central Arkansas · Member since 2009 · 509 posts · 178 votes
    17y
    Originally posted by Curt Davis:
    Greg,

    The best way to do this is sign a non circumvent agreement with the person who has the property. It basically states that you are bringing a buyer and the are providing the property and that you will make X% of the sale.

    This will protect you from what your worried about.

    I don't think he's worried about the % of the deal, sounds like he doesn't want to loose his buyer to another wholesaler to me.

    Jeff

    0Reply
  • Joseph Ziolkowski
    Inspector · Alsip, IL · Member since 2008 · 361 posts · 75 votes
    17y

    Does anyone know where I can get a good, enforceable copy of one of those flex-option contract? I am finding myself in the same position now, marketing deals for other wholesalers as a kind of a sideline. I've never used one before, and have never seen one. Any ideas? Thanks!

    0Reply
  • Vanessa J
    Member since 2009 · 2 posts · 0 votes
    16y

    Hi, I am new to this forum. Yes I will PM you the contract, I got from someone else.

    0Reply
  • Peter Giardini
    Rental Property Investor · Baltimore, MD · Member since 2009 · 624 posts · 559 votes
    16y

    Two things...

    1st... if you don't someone stealing your customers... then make sure you are always delivering the highest level of service to them.

    2nd... to deliver that high level of service... get out there and find the deals directly and then assign them to your buyers.

    If you do these two things and the deals are good deals, you will have a constant stream of investors wanted to purchase from you.

    0Reply
  • Joseph Ziolkowski
    Inspector · Alsip, IL · Member since 2008 · 361 posts · 75 votes
    16y

    Hi Vanessa, welcome! I already got 2 flex option contracts from other folks on the site, but thank you for your offer. Also, if there is anything I can do for you, please feel free to pm me.

    0Reply
  • Rodney Dawkins
    Real Estate Consultant · Charlotte, NC · Member since 2009 · 65 posts · 14 votes
    16y

    The flex option contract sounds like a great idea. Wondering if anyone has a copy that they could send me? Thanks

    0Reply
  • Demos Loizides
    Real Estate Investor · Dale City, VA · Member since 2008 · 317 posts · 77 votes
    16y

    For Rodney Dawkins - I e-mailed you a flex option to purchase agreement shortly after you requested one in your post. Did you ever receive it?

    0Reply
  • R Jenkins joshua
    Real Estate Investor · oak creek, WI · Member since 2009 · 187 posts · 8 votes
    16y

    flex option to purchase agreements -can someone email me a copy also

    Thank you, in advance

    Regarding Peter Giardini ‘ get out there

    and find the deals directly and

    then assign them to your buyers ‘

    : I have not done a Wholesale deal yet,

    but it seems everyone looking to

    partner up now a day

    Supposedly more quality deals equal

    more money (partnering up )

    This just my opinion

    0Reply
  • Rodney Dawkins
    Real Estate Consultant · Charlotte, NC · Member since 2009 · 65 posts · 14 votes
    16y

    To DemosL - Thanks I have received the flex option contract that you sent me. Thanks so much this should be very useful. If there's ever anything I can help with please let me know.

    Rodney Dawkins

    0Reply
  • Demos Loizides
    Real Estate Investor · Dale City, VA · Member since 2008 · 317 posts · 77 votes
    16y

    Rodney - I first received it from another investor. Just do the same and pass it along to people that need one.

    Good luck with it.

    0Reply
  • Luis Marquez
    Member since 2018 · 1 post · 1 vote
    7y

    can some one explain what a flex option contract is?

    1Reply
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