I just had a question pop in my head and I couldn't find any clarifying answers. So, is it common for a wholesaler to get a property under contract from a different wholesaler? If the price is right and you see an area of profit of course, but do people do wholesalers flip their contracts to other wholesalers? And is the process still the same? Any feedback would be great.
It does happen wholesaler to wholesaler. If the numbers work then yes proceed. Process is the same if both contract specifies that there is a buyer "and or assigns" in the contract. Want to make sure the wholesaler has the authority to assign contract.
Hope this helps,
This is exactly what I was looking for.
@Larry F. Thanks Larry very helpful.
@Morenike Arraheem - I would recommend you are VERY clear with the other wholesaler about what you are intending to do, and approach it more like a joint venture. As a buyer, if I receive the same deal from two people, I am immediately suspicious.
So, everyone should be on the same page. Never try to 'sneak one by' someone.
@Jimmy Tsokas I wouldnt say its common, but it does happen. As others have mentioned, wholesaler B definitely needs to speak with wholesaler A to let them know what they want to do. More often I see JV agreements where a wholesaler with a deal doesnt have a buyers list to market to and partners with a wholesaler who does. Also wholesaler B needs to be mindful of their end buyer using a HML to buy property. Ive heard some lenders here say they wont fund deals that have complicated chains of contracts.
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