I have a friend who had a JV agreement with another wholesaler today but the JV was written up for the sale of a 2 for 1 deal which was written as 2 separate houses for 1 price. The total price was 250k (for BOTH properties) so the JV said anything over 250K (Thats what the owner gets) we split 50/50 and it was listed for 275k. My friend brought the cash buyer into the equation after several days of non-stop work bringing people to see the property (and he lives over an hour away) and having tons of leads.

A buyer stepped forward and agreed on only 1 of the 2 properties for 65k. The seller let them be sold separately after speaking with him so around 3pm today they all came to a mutual agreement, shook hands and 65k was set to be signed and earnest money deposited first thing monday morning (because its Saturday and everything was closed). The buyer was notified and happily agreed (as they did go back and fourth a little bit).

2 hours later, my friends partner who he has the JV with gets another offer for slightly higher (68k) and behind his back accepts his offer as well (since he didn't have to split it, so it was all profit for him). Now he approaches my friend who already told his buyer that the deal was set for Monday morning that there is another offer. So, Now he goes back on his original deal with him and leaves BOTH deals open and set for Monday so come Monday morning there will be someone thinking they are buying a property who will be very upset.

To make things WORSE, a 3rd deal came in about 30 mins after the second deal and its for 65k but the person bringing the cash buyer only wants $2500, where my friend who was in the JV for 50/50 would have made $7500.

My friend does NOT want to go back on his cash buyer so he offers part of his profit to match the second deal of 68K (so he would come off an additional $1500 from his profit and give it to the other wholesaler JUST to make the deal work and to keep everyone happy.

The wholesaler still leaves ALL 3 deals open for Monday morning and tells my friend that he will take HIS deal from his buyers at 65k but he will only give him $1800......which is just absolutely crazy from what the original deal was....and my friend said, well can you at least make it an even 2k and he says NO, and says the MOST I will give you is $1850, when the other best offer was the same 65k with paying $2500.

THIS WHOLESALER IS MAKING $15,000 PROFIT, But won't give my friend $2,000?

What do you guys think about this scenario. Has anything happened to you of this nature? Is my friend wrong for feeling some type of way since they originally agreed on his deal etc...? I would love to hear your feedback