Co-Wholesaling and Non-Circumvent

[Larry N.]

When co-wholesaling with other wholesalers, some advise getting either an Assignment Contract, Marketing Agreement or Flex Option to gain control of a property from a Seller/Wholesaler to pass on to your End-Buyers. The Flex Option gives both the Seller/Wholesaler and Investor equitable rights and flexibility to sell, so the Seller/Wholesaler's property is not tied up. If one uses the Flex Option to take control of the property, what would be the best way to keep the End-Buyer and Seller/Wholesaler from going around the Investor's back and cutting him out of the deal, since the Seller/Wholesaler can continue to market to Buyers on his own efforts? Thanks, Larry

[Roy N.]

Larry:

I found the post a little difficult to read.   This Flex Option sounds like Tim Mai guru stuff, but it's still an option contract granting an option to purchase ... I don't follow how it provides equitable interest in the property as you have no contract of purchase, just the (non-exclusive) right to enter into a contract at a pre-arranged strike.

Why not simply purchase the property and then resell it  - as practiced by wholesalers in any other industry?

Convoluted diasy-chaining of wholesalers on a deal - to the point where it is not a deal -  is part of what makes folks wary of wholesalers.