When to share property address on a wholesale deal?

Question

Hi all I am marketing a wholesale deal and have a lot of potential buyers asking for the address right off the bat. I have sold a couple others and didn't have them ask so quickly. I am concerned about someone trying to go around me and negotiate a deal with the seller, but I also realize that they need to do their due diligence. My question to you wholesalers out there is, when do you share the property address with potential buyers? Have you ever had anyone "steal" a deal from you? Maybe I am being too paranoid. Would love some advice on this. Thanks in advance!

Steve Davis · Answer

If you have an established list of buyers, then I would suggest having them sign a non-disclosure/non-circumvention agreement so that you can share with them any property address with the understanding they will not circumvent you or disclose the opportunity to other buyers.  For publishing the opportunity, it is best to keep the address undisclosed until you can be contacted for specifics at which point you should request the sign the NDNC before revealing the addresses.  Otherwise you can put some contract together that protects you from deals that you show them and if they proceed without you, you get paid anyway as though you were assigning a contract to them.  I have been aware of some investors who do circumvent all types of wholesalers and they are the main reason the rest of us honest folks have to protect our work product.

Stephen Keighery · Answer

@Brian Cowan I do not post deals publicly  and don't send out the house number in my deal emails. As soon as a buyer asks for the full address I will give it to them. I do this mainly to understand who is interested and to control traffic to the property. I did have someone go around me once from the 50 deals I have closed. Most people won't though and by only emailing to your list you can remove bad actors from the distribution. I was newer when that happened and once you establish yourself as someone who has good deals most people will prefer to work with you than go around you.

Anthony Davis · Answer

Sharing the property address with potential buyers after you have a signed contract is ideal. To keep buyers lined up for your wholesale deals, just stay in communication with them. Keep building your buyers list. Let the buyers know the neighborhoods (areas of town) where you are 'lining up' deals. This way, you will have buyers who are looking for specific floor plans, price points, and neighborhoods; because neighborhoods will vary.

Dev Horn · Answer

I actually think Mike is right.  Once you have it UNDER CONTRACT, where the seller has signed on the bottom line, you should be able to freely share the address.  It's unlikely the seller will sign a 2nd contract once they are already under contract to sell it to you.

I get emails from wholesalers and - as a cash buyer - I won't even think 2 seconds about them if they don't have the address.  It's all about the address.  If they don't include the address, I assume they don't really have it under contract and they are trying to use my time and energy to figure out what they can pay for the house.

Also, when I wholesale deals myself, my seller understands that I will be bringing some people over to show it to them, get estimates from potential contractors, etc. - my contract explains that I will be doing that.  Then they expect to see people come and check it out - they understand that is part of the process.

Mike Cumbie · Answer

Not a wholesaler but I would think about 3 seconds after it was under contract. You locked it up now you want everyone to come and bid for your paper.

I could be wrong of course as it is not my area of expertise.

Jeffrey Fronczak · Answer

I have had a few deals "stolen" after sharing too much information. Very discouraging, especially when first starting out.

Brian Cowan · Answer

Thanks @Dev Horn. Good points. And the seller is aware of what I am doing so she will be fine with investors coming by.

When to share property address on a wholesale deal?

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