Protecting Your Buyers in a JV partnership

Member since 2024 · 45 posts · 16 votes

I am working to help wholesalers sell their properties. I had a situation where the wholesaler cut me out once they found out who my buyers are. It was suggested that I do an assignment vs jv partnership agreement. My question is: If I have the wholesaler that has the contract assign it to me when I have an offer for a property from one of my buyers, Can the wholesaler A find out who the buyer is when it goes to close? I I am looking for ways to protect my unique position in having solid buyers and not get cut out of the partnership. My buyers buy at up to 80%.

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Arn CenedellaPro Member
Rental Property Investor · Greenville, SC · Member since 2008 · 786 posts · 1k+ votes
2y
@Kenneth Germann
There is an element of trust in getting business done.
1. If someone does you dirty, just don’t do business with them again and don’t hesitate to let our folks in your local investing community know that X can’t be trusted. While X may score on one deal by going around you, ultimately his or her business will suffer.
2. Your buyers are NOT Snow White in this case either. They willingly participated in cutting you out. See 1 above. Don’t work with people who don’t value you.
People going to do what they are going to do.
Find A level clients and work with them. Let the C and D clients go, they are not worth the time and effort.
Fool me once shame on you, fool Me twice shame on me.
[email protected]650-575-6114
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
Quote from @Kenneth Germann:

I am working to help wholesalers sell their properties. I had a situation where the wholesaler cut me out once they found out who my buyers are. It was suggested that I do an assignment vs jv partnership agreement. My question is: If I have the wholesaler that has the contract assign it to me when I have an offer for a property from one of my buyers, Can the wholesaler A find out who the buyer is when it goes to close? I I am looking for ways to protect my unique position in having solid buyers and not get cut out of the partnership. My buyers buy at up to 80%.

Comes down to who you are dealing with, its very easy to find out who the buyer is, boils down to the wholesaler you are dealing with, which unfortunately many get a bad rap in the space.
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Kenneth Germann
OP
Member since 2024 · 45 posts · 16 votes
2y
You have wholesaler A with the contract. Wholesaler B with a JV agreement with Wholesaler A. Wholesaler B assigns me the contract. I double close on the deal. In a double close, the seller and the wholesalers in the A to B to C side of the transaction shouldn't have access to who my buyers is. They should only have access to the A to B to C information in the close. In that transaction, I am the buyer. The title company should only provide the statement to that side of the transaction to the seller, and 2 wholesalers. I would close with my buyer. That side of the transaction is between me and my buyer. The title company would give the statement to me and my buyer. You need to make sure that the buyer signs before me the seller does on the C to D transaction. This was my original question :)
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