New Wholesaler asking me to sign Nondisclure agreement

6 Replies

A wholesaler approached me about a group of properties that I may or may not have interest in purchasing.  I do not know this wholesaler and they approached me but they want me to sign an NDNC agreement prior to releasing the address for me to inspect.

Further, I asked them to send over their NDNC and they dont have and asked me to find one and send to them this morning.  

I am on any buyers list and have properties sent to me everyday to evaluate.  I dont think I have been presented these properties because of the area but, if I have been presented, I wish to remain loyal to first wholesaler and avoid any trouble because I signed a NDNC.

Thoughts or Suggestions?

 

Did I read that right? "Further, I asked them to send over their NDNC and they dont have and asked me to find one and send to them this morning." If they don't have a NDNC, you could make your own and exclude yourself as to make it meaningless. Makes me wonder if they even have the properties under contract....

Sounds ridiculous. Likely another product of the guru system . . . 

@Robert M.

New wholesaler doesn't begin to describe these wholesaler. In all likelihood, the "seller/wholesaler" does not have the property under contract, hence the need for a NDNC.

As Guy suggested, odds are this is not a deal . . . if you have the property under contract, there's little need for a non-disclosure.

It is possible that this supposed wholesaler is actually trying to compile a list of buyers in the area that they will be attempting to sell. I have run across that scheme recently. 

Originally posted by @Joshua Dorkin :

As Guy suggested, odds are this is not a deal . . . if you have the property under contract, there's little need for a non-disclosure.

 I have a few personal experiences that say otherwise. For one, I've put a property under contract that I later elected I need to assign as I found another deal to rehab - only to have one of the buyers I shot it out to tell a couple of his investor buddies. Little did I know, that a day or two later word got out and some shady criminal investor who heard about the deal went around my back (and my contract) and got the seller to sign a contract and closed within three days before I even knew a thing.

Granted there are many ways to help protect oneself from thieves/criminals like this guy - maintaining a good relationship with the seller, affidavit of memorandum, only shooting out your deals to trustworthy buyers, closing on the deal before your wholesale it, and so forth. And although a non-disclosure might be one of the least effective ways of protecting yourself, there's definitely some value in it. 

Here's the kicker though, the investor who did it - REGULARLY steals deals from other investors in the market and is known for it. To top it off he is one of the top wholesaler in the market so he is often getting the same leads as the rest of us. For obvious reasons I won't give out names. But it's a real issue for me, one that I have no complete end-all solution for. And I'm sure I'm not the only investor out there who has a character like this in their market.

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