BiggerPockets

Flex options are ideal for wholesaler to wholesaler deals.

Would anyone be kind as to suggest a $ dollar figure for a fee to wholesale a wholesalers deal?

I'm in this situation where I have a buyers list and a wholesaler asked if I would send out his deal to my list.

The deals are all under $100,000. His asking price is 70% LTV so there isn't much profit to wholesale to other investors.

I welcome any suggestions.

Thanks

Khalid

Don't know what your asking in your last post, but if your asking about options you can option anything. You can option your option, that keeps you in control until payday.

Juniper

Same thing you get a non-exclusive option from the wholesaler and you keep the wholesaler away from your list.

Your fee is the difference between your option and and what your investor will pay. I want as much money as the wholesaler is getting.

The buyer is just as important as the property to me. I find the buyer, have the wholesaler assign his deal to me, and then I assign it to my investor. I keep control..

Khalid,

The option specifies how the profits from the deal will be split. It allows the second wholesaler to get a fee, sometimes up to 50% of the deal.

The option will specify the lenth of the option and actions the 2nd wholesaler agrees to take.

Hope this helps?

Khalid,

Did you ever find an answer to this?

Tommy

Khalid - in your first thread, you were the first wholesaler. In your last thread, you're the second wholesaler. Then you asked about the option going to closing. Technically, an option isn't a contract to buy property. It's an option, but not an obligation. If you're the optionee on an option, you would have to exercise your option to purchase and create a contract. The contract would go to closing.

If you're the second wholesaler with an option to purchase property from the first wholesaler, it will usually be a non-exclusive or flex option. There probably isn't a whole lot you can do if the buyer goes behind your back to work out a deal with the first wholesaler. However, I think most investors don't want it to get out that they screwed over another investor. I believe and hope there's honor amongst us.

If you have an option to purchase agreement with the onwer of a property, try to get an exclusive option. This way, they have to sell you the property, but you don't have to buy it.

If you're the 1st wholesaler, try to tie up the property with a regular option, not a flex option. The regular option locks up the seller to only selling to you, but you only have an option to buy. You don't have the obligation. If you run into resistence with the seller not wanting to tie up the property with you because you're not the end buyer, you can use a flex option, which will allow the seller to keep marketing their property. This allows you to market the property, but doesn't really lock up anything. Then, if you find a buyer, get the seller to either sign a regular option or get them to strike out the part of the agreement that allows them to cancel the agreement. Then have them initial and date it and send it to you, before you send a buyer to the property. You can also send a purchase and sale agreement.

Now, you'll have an assignable agreement.