Cut Out The Middle Man (Me)

2 Replies

As it relates to flipping, how do I protect myself from a buyer who may want to cut me out of the deal so that he/she can take over the property for a lower price?  I heard of stories where the buyer waits until the investor's contract is up and then they contact the seller directly to close the deal.

Thanks,
Kelvin

Hello Kelvin,

It happens all the time. You need a non circumvent agreement. Have the potential buyer sign a non circumvent for each address/property you put in front of them. It should state something to the effect that if they purchase the address listed on the agreement within X amount of time (12 months, 3 years, whatever) then your fee has been earned and is due upon settlement of the property. This will protect you. Sometimes you have to go back and do some digging if they settle the property in an LLC so make sure the non-circumvent includes personally as well as any entity they may be part of no matter ownership percentage. Hope that helps!

Cheers!

Hey Chris,

Thanks!  This is exactly what I'm looking for.  Anything to try and curtail this from happening helps.

Regards,
Kelvin

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