Trusting your Buyers?

6 Replies

Hi all, I am brand new, *Chicago area) and reading everything I see.  I want to start wholesaling, and am probably overthinking everything, but I have a few questions I don't see answers to.

1.  If I contract with the seller, can my buyers do a walk through of the property?

2.  If they can,what prevents my buyer from trying to go around me and deal direct with the seller (or vice versa) and cutting me out of the deal?  

Does this happen?  

Any legal recourse if it should?

I'm hoping it doesn't happen, but just want to know what you have all experienced in the past.

Sorry for the silly newbie questions!

Welcome to bigger pockets, I have to start by saying I have never wholesaled a property before but I have had them offered to me many times.   You could have a agreement signed with the buyers that says if they buy or refer the home to anyone you must be the seller.  You could also put the home under contract, so your the seller.  There are many different answers to your questions.  Go find a couple of buyers of homes and make an agreement with them.  I see a person that would work with me as a valuable asset and would never go back on my word to pay them.  This is a great business that you can choose for the most part who to work with.  If you have a bad feeling about them or feel they don't operate with your sense of fairness don't work with them.  Life is to short.

Good luck Jim

Welcome, and yes your buyers are going to want to see the property. You should always be transparent about what you are doing with the house.  You have negotiated with the seller to get them their price. They should be good with that.

You have to let the buyer know that you are wholesaling the house. As in life, most people are going to respect the seller and your relationship. Some people will not. I try to keep them apart if I can, just to guarantee 100% that they do respect the relationship. I try to work with people that i like and whom I can trust. 

I dont think I have been cut out of a deal, but maybe I have. Again I try to work with people I trust and who trust me.

@JimKeller

Thanks for the reply.  As I have not started yet, I want to believe I can establish relationships that I trust, I guess my question was, am I being naive in thinking that?  I have no buyers yet, no sellers either as I am just preparing myself to do this. I'm just curious if it is a problem in the wholesaling business.

@RichardPozos

When I jump in, I plan to be very transparent, I don't want or need any trouble :0

I just wonder if you tell the seller, I will be bringing potential buyers through the house, and you answered my question, thanks!  I hope to establish great relationships with buyers, so its good to hear you haven't been cut out of deals that you know of.

Thanks so much!

Hi Arlene,

One our organizational core values is to develop personal relationships with everyone we do business with. 

You can have all the contracts in the world, but if they other guy has more money, they'll bleed you dry in court so you might win a small battle, but you'll lose the war. 

Do business with people you trust, communicate often and ensure thorough understanding, and stay out of court.

Originally posted by @Scott Lewis :

Hi Arlene,

One our organizational core values is to develop personal relationships with everyone we do business with. 

You can have all the contracts in the world, but if they other guy has more money, they'll bleed you dry in court so you might win a small battle, but you'll lose the war. 

Do business with people you trust, communicate often and ensure thorough understanding, and stay out of court.

 Thanks @Scott_Lewis,

That is my hope :)

I don't seem to have the @ tagging down yet.  Sigh

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