Good Morning all!
I have a deal that has a total of 3 wholesalers. What is the best way to assure everything goes smoothly? Example: One wholesaler gave me (Also a wholesaler) a property for to market to my investor's list. Thru public advertising, another wholesaler inquired that HE has a buyer interested in the property. I never had this happen before. What's the best way to handle whereas everyone gets paid. Btw, the property is very inexpensive, with a lot of equity and very little work. All three wholesalers are only making a few thousand each, (quantity is the key, not tons of $$ off one deal) which still makes the deal very attractive. But, what kind of paperwork do we utilize to assure everyone gets whats due to them? Also, there's no financing, this is a cash deal.
the simplist resolution I could provide is to come back to the seller and advise her that your financial partners are requesting to be place on the deed. Ad the other wholesalers on the purchase and sale agreement with you then right out your assignment contract to specify which investor gets what percentage of the assignment fee.
Some might not agree and will advise you to just complete a chain of P&S Agreements along with a chain of assignment contracts and let the title company figure it out. But I prefer the first way because my title company charges a rate per page the process so this keeps closing cost to a minimum(not much of a difference) and avoids all the paper workd confusion.
Buts thats just my experience.
@Manny Cirino I agree with you. The first solution may be easier for everyone! Thank you sooo much for your advice. Good thing I have a good report with the seller. Shouldn't be an issue.
However, I will let you know the outcome! Have a great day!
The wholesaler that has the deal under contract with seller and the wholesaler that brings their cash buyer to closing table should be the only 2 partnering on deal. I would never let another wholesaler tie up my deal, knowing they don't have the ability to close. I hope this helps..
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