I am in a unique (maybe not so unique) position of seving as the middle man between a whole seller and investors. I am currently working with a whole seller who also does flips but is currently receiving a list of properties from an asset manager, I am aiding him in finding buyers for his properties. Now, once I find a buyer and the offer is made how do I ensure that I get paid an agreed upon finders fee without getting cut out completely? Is there a specific addendum or clause I can insert into the purchase agreement?
Sounds like you are basically bird dogging buyers for the wholesaler.
You could just draw up a contract with the wholesaler. Something in writing that would outline your arrangement.
If it were me I'd just trust that he'll pay you. If he does cut you out simply don't work with him again. Best to know right away.
This is all based on a similar situation I'm in. I am also very new to this and may not have the best insight.
I am actually in the same boat, (but I am doing a three way split on a wholesale deal) but that being said this will be my first close and the guy who is helping me point out a lot of things to look for in a home, I would of never of found these things or take pictures of them but he is actually helping me out by a lot,
also I did do some bird dogging whit the same person and he keeps giving me updates to I was a little worried about him screwing me over, but I am glad I just went whit it, things are turning out great, and I found a new partner/mentor, to point me in the right direction.
hope this help
@Michael Williams , the term is wholesaler, not whole seller. Anyway, being a middle man for a middle man in a transaction is a difficult position at best. Actually, any contract you draw up is probably not enforceable since receiving a commission for any real estate transaction requires a real estate brokerage license. Unlicensed "brokers" do receive commissions all the time as enforcement is near impossible. However your protection will be "relational" rather than legal.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.