, I needed to ask you a investor question, I found a wholesaler who is under contract with a seller and is looking for a buyer I have a buyer for the deal. He has offered me $1500 referrals fee if I find a buyer. I am not under contract with him, how would I make sure I got paid.
First, by finding a buyer for a property you don't have an equitable interest in, you could be construed as brokering real estate without a license -- which is against the law. You should check with a real estate attorney to verify that you're not breaking any rules/laws in how you're going about your venture.
Next, assuming you determine that what you are doing is legal, I would recommend creating a joint venture with the other wholesaler and have a JV Agreement written up by a qualified contract attorney. That should secure your rights in the agreement.
Thank you for answering my question, I guess It's just not a deal for me. I surely don't want to do anything illegal. I'm just starting off on this real estate investing venture, an appreciate good advice.
The wholesaler needs to assign you the contract and then you assign that contract to your end buyer. You can assign a contract as many times as you want but that would be the way to do it.
That makes a lot of sense, if he is serious and plans to hold up his end of the bargain, than he would agree. Thanx for taking time to shed some light.
Ronnie, don't run from the deal! J Scott's answer was spot-on. Just use a JV agreement to both give yourself an equitable interest (to make it legal) AND protect your payment interest in the deal.
You could probably search around or ask your local investing club for someone with a JV template.... they are usually pretty simple.
Thanx, I am looking that JV agreement up right now, this shall be a great learning experience.
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