Hunting for my own off market deals as well as using a wholesaler

[Toby Fellows]

I’m looking to create my own lead generation system to generate off market deals but the contract I have with my wholesaler make me wonder whether I’m sailing too close to the wind and if they would potentially have me up for breech of contract. One of the clauses states

‘representatives, and assigns, shall not, for a period of two (2) years, initiate, solicit, negotiate, or enter into a contract for real estate with any of  (wholesalers name) Contacts or seek to by-pass, compete with, exploit, avoid or circumvent (wholesalers name) from any business opportunity by utilizing any (wholesalers name) Contacts or confidential or proprietary information obtained from (wholesalers name) to their detriment.

Is it ok to hunt for deals and just ensure that I document dates of contact so should a situation arise where they also put the same opportunity in front of me I can validate I was already speaking with them or am I overthinking it? 

Thoughts? 

[Tim Delaney]

@Toby Fellows that is a pretty restrictive clause and would seem to only apply to previously supplied opportunities. They should not be able to stop you from sourcing your own leads. I guess to be safe, yes you should document your contacts, but at the end of the day if you had already been in touch with a seller and couldn’t get the house under contract for the price you wanted, what are the odds that the wholesaler is going to bring you the deal at an even better price? And if they do bring it to you at a better price wouldn’t you just take it from them anyway?