Would you pitch a deal to another investor?

Question

I had a property under contract that I just couldn't fund myself, and the seller didn't want to extend the process any further. There were a lot of plans involved and town meetings.

Since the deal didn't work out for me, do any of you see a benefit in me pitching the idea to another investor? Im friendly with him and he is my girlfriends boss.

Mindy Jensen · Answer

Many states are cracking down on wholesaling - getting a property under contract and assigning the contract. It's considered brokering real estate without a license.

And wholesalers: Please don't argue with me about this, I'm not on any state's licensing board. I'm just sharing this with you all so you know. Florida is cracking down, Ohio and Orgeon are also tightening their laws.

Assigning a contract is the issue here. If you get a property under contract and purchase it, then resell what you own, no states are having an issue with this.

Steve Hall · Answer

@Brian Ellis

Don't sh*t where you eat!

Pitch the deal on BP and let the interested come to you.

Shaun J. · Answer

Legal in all 50 AFAIK

Nick C. · Answer

If it's a good deal why just pitch it to the girlfriend's boss? Why not pitch it to any interested party that will pay you an assignment fee?

Frank Wong · Answer

Hi Brian,

I think it depends on a few things. First would be what you will benefit out of it. Is it worth that? Does your GF boss have the skill set and funding to complete this project? The last thing you want is to drag someone else into this and for them to chicken out and waste your time or get involve and lose money and blame you.

Shaun J. · Answer

Regarding the line, I bolded in your comment, actually banks and what not have issues with a quick flip. They have their seasoning requirements etc.

You know, if the government would just mind their own business, we'd all have more money. If they do in fact "outlaw" wholesaling, then everyone can just go get their "Real Estate License" and then there will be a flooded market of real estate agents/brokers and not enough homes to sell. And who will they have to blame for that? Themselves, because for some reason a lot of REA HATE Wholesalers.

Brian Ellis · Answer

Is that even legal in MA?

Brian G. · Answer

@Brian Ellis yes for sure. 50% of something is better than 100% of nothing.

Shaun J. · Answer

Wholesale it!

Brian Ellis · Answer

The investor has an established business, it would be a good opportunity for him and his partner to expand, and I believe they are looking to expand already. Im a little concerned since my girlfriend has been working under him for a long time, and would speak with her prior on how she feels about it.

I wouldn't know how to go about structuring something that benefits me. I would learn a lot, and gain trust from accredited investors. But id definitely want something out of the deal.

A lot of the work and research has already been done as well.

Would you pitch a deal to another investor?

Would you pitch a deal to another investor?

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