i found a wholeseller who has a home under contract but he cant find a buyer the house has a tax levy on it. So i told him i could find a cash buyer from my list to buy it.
But,how can i secure my self from having the wholeseller im working with from stealing my cash buyer when i try to get the deal done? Any Contracts we can set up . The wholeseller told me he cant grant me exclusivity.(not to sure what that means EXACTLY)
If you have a solid buyer the best and easiest thing to do is to rewrite the initial contract with both of your names on there. and arrange it to specify percantage of ownership. If you have a buy and he doesn't agree then walk. It's his loss
And therein lies the problem when you don't have a license, but even at that, your buyer can always work with other sellers.
You need to look to the agreement between your buyer and yourself, not with the other seller. He can agree to purchase a specified property from you, a contract with the exclusive right to sell to him with your fee payable.
Another way is for you to team up with the other seller with an agreed fee and both of you assign the deal.
Enforceable? Maybe, depends on several factors, such as, are you in the business of doing this? As that becomes an activity of licensees in representation.
You don't need an exclusive right to buy and sell the property, just an exclusive right to sell that property to your buyer.
Is there any honor among thieves? LOL :)
Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com
@Chris Graf I'm most comfortable with having the wholesaler assign the deal to me for his fee. @Manny Cirino knows that you must protect yourself, and I completely agree. Unless you know them well enough to do a JV (Joint Venture) agreement with them as a business partner, control the deal. If you don't have a buyer within a reasonable amount of time, don't burn them, or you'll risk never getting a second deal. All the best!
@Manny Cirino i told him i wanted us to sign a marketing contract stating that i will market his deal to my partners andd if i get the deal done we split the proit 50 50. thats when he said "thats fine but i cant grant exclusivity" (what does that mean? And What should I do?) he only has 5 days to sell the contract due to tax levy on home.
The tax levy isn't the problem. It's the price Plus the levy that determines the price. It's either a deal, or it's not.
Trust is every thing and in this business the sad truth is that there are so many shady people. It was one of the quickest things I learned. From people breaking lock boxes to foreclosure, painting them and renting them out to investor going around to stealing your buyers. That's why I say make it as solid as possible. Rewrite the Purchase and Sale with both your names Make it 50%-50% split. Also have him sign off on your assignment agreement and have that submitted to the title company rite-a-away and this way there is no funny business.
The important think is to make sure you can perform or your damaging your reputation.
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