Double Assign A Wholesale Deal?

Question

Here's the situation....I have more buyers than true wholesale deals which for my buyers is 40% - 55% in a variety of markets in e.coast, mid-west (yes, they care more about the deal, than location)....other wholesalers have asked me to shop their deals to my buyers list, I am happy to do so, but I do not work for free.

How can I ensure I get paid from closing?

1. Does wholesaler assign to me....then I assign to my buyer? Will title/closing accept two assignment forms?

2. Or does wholesaler write me in directly to assign form? But then I risk exposing some of my "big dog" buyers??

Thanks in advance....I have no desire to be a realtor, just happen to have some where as others have the reverse problem.

Richard Lorenzen · Answer

I've done a few deals like this before.  I always wondered myself whether I could "double assign" a deal, but I've never attempted it yet since I don't want to lose the deal over a problem with the contracts.  Instead I have two other methods:
                        1. I sign a JV contract with the wholesaler I'm selling a deal for.  This contract specifies that I'm to get x amount of money if my buyer buys the property.  This money either comes out of the other wholesalers fee or we raise the price of the property slightly to accomodate my fee.  When my buyer makes an offer the other wholesaler sends me the assignment contract and I get it signed and get him in touch with my buyer.  The deal closes and I get paid when the other wholesaler gets paid.
                        
                        2. I tell the wholesaler he has to do a double closing instead of an assignment.  This allows me to draw up a new PSA and assign it to my buyer.
                        
                        I prefer method 1 and use it most, however it has some downsides.  The first and most obvious downside is the wholesaler gets access to my buyer.  The second is my buyer sees a huge assignment fee on the contract because it's a combination of my fee and the wholesaler's fee.  
                        
                        Method 2 is harder to get a wholesaler to do when she's already set on doing an assignment.  The good thing is we're in a terrible market and that sought of puts their back to the wall.  They may not be able to find another buyer. 
                        
                        Hope this helps.

Natalie Wade · Answer

Here are my thoughts on the matter.  If you wanted 5k and the other wholesaler wanted 5k for a total of 10k I would work the deal so that each of you can get 5k a piece, and include how the transaction would close in the closing detail sheet with the closing attorney and title company.  I have a property here in Oakland CA that your buyers might be interested in.  Let me know your thoughts.