My name is Barbara, I'm new to realistate wholesaling industry, in your opinion is it a good or bad ideal to provide the property address for a buyer to research to determine if he/she wants to accept the deal, prior to having them sign an document. My concern is that I don't want an issue with the buyer trying to make a deal with the seller directly; since they have address, pricing etc.,. I have a buyer who has stated that he/she does wholesale deals with wholesalers. yet he wants to research the property by me providing the address, pictures which I understand and what the seller wants to sell the property for, looking for some input regarding this matter.
2nd does anyone have any suggestion and is there a document I can get access to for the buyer and or seller to sign to
protect me from the property being purchased without my assignment fee being paid, in other words deal being completed between seller and buyer after I had done all the due diligence of the property search.
lastly has anyone ever experience this type of scenario just wondering.
I've never done wholesaling, but if I understand the concept correctly, I think you would want to get the property locked up in a contract to buy before you try to sell it. Your contract could have a 30 or 60-day close date. Your goal is to get the property marketed, contracted, then sold on assignment on the close date. If you have the property under contract, you can be more open about the address because you've got it locked up.
I hope that helps. I wish you the best!
@Barbara Garrett , first do you have the property under contract! If not, then do that first.
Once you it under contract, I would ask the buyer for a POF, preferably a bank statement. I don't want to waste the owner's time, nor my time with a tire kicker.
Next go to the property with the buyer, instruct the buyer to ask you any questions they may have, but NOT THE OWNER.
Let's suppose you do all of that & the buyer goes the next day to talk with the owner to try go around you. Well, one you have an enforceable contract. If the owner signs another contract with your buyer, take your contract down to the your title company and let them know what is going on. They can help you out with what you need to do. There is some type of official paperwork that you file with your city/county that when the buyer tries to close on the property with the seller, your contract shows up as part of the chain of title. What this does is cause the buyer to have to contact you to clear it up - which is when you tell them " $5K and I will go away, otherwise kick rocks!" Buyer can't buy, seller can't sell to no one else.
Next remove that buyer off your list, NEVER do business with them again & broadcast that buyer's name to everyone you know locally.
Good Evening James,
Thank you so much for taking out the time to respond to my question, you provided me with very valuable information that is going to help me in ensuring that I don't get taken advantage of being new to the industry of realistate. You provided me with excellent points and I truly appreciate the feedback.
Good evening Jonathan,
I would like to first say thank you for taking out the time to review my questions, ok re the contract first, I was thinking that is what I needed to do, yet you and others have confirmed this is the way to protect my interest in the property; and yes you was very helpful in providing me with great feedback of how to handle this particular situation.