Rental Property Investor · Burlington, KY · Member since 2017 · 101 posts · 66 votes
Okay, so I got a property under contract, the numbers are phenomenal, and I just got it under contract like not even 8 hours ago. I've been contacted by a cash buyer who wants to pay cash, and close quickly. However, they want to go see the house that I just got under contract for a wholesale deal. I don't want my cash buyer, and seller meeting one another. How do I go about resolving this issue? I want things to go as smooth as possible, but I feel that if the two meet they can swoop the deal from underneath me. Help!
@Aaron Phillips I am not the right guy to give you wholesaling advice. Its not my space so I won't pretend to know the ins and outs of it.
What I can say is that you need to think about the service you provide and to whom you provide it. Wholesalers should add value to the buyer through locating undervalued properties in areas with favorable rental characteristics. They save them time and money by answering big questions about rehab costs, negotiating with owners, figuring out ballpark what it should rent for ect ect.
Looking at it through the lens of only getting deals under contract so you can get your part of the action is what causes this fear of being cut out . A wholesaler who adds value by saving the buyer time doesn't have that problem because that buyer would never dream of doing anything which would jeopardize the relationship; that relationship makes money.
I get that wholesaling is a means to an end for you, but that's no excuse not to treat it like a job.
Actionable advice: Ask the buyer to cut you a check for a finders fee, connect the buyer and seller, and tear up your contract. Then get out of the deal because the two months of reading you've done hasn't prepared you enough to see thing all the way though.
There has been some good info here and some bad info. Steer clear of any suggestions that may seem questionable. I agree 100% @Mindy Jensen about trying to cloud title. That can also lead...
@Mindy Jensen Is there any chance of getting a "Down vote" for the forums? I may be new but I'm not blind to some of the bad advice being bantered around. Down-voting is a pretty standard part of rating in the tech community (and for good reason). Just a thought.
I mentioned a down vote sometime back. I specifically wanted to give a thumbs down to the FRAUD AND SCAMMERS that promote illegal activities as well as those promoting lying to sellers. Mindy said they have not wanted to go this route. I bet $1000 the FRAUDS AND SCAMMERS would vote down every post where I pointed out their games!
I am a Broker in CRW and have asked the Real Estate commission about this. I DID not get a clear answer as to if wholesaling was a no-no AND there actually might be an advantage of NOT getting your license. Feel free to call me anytime for advice!
@Shaun Pruett In the event that I cannot wholesale it within the month I given on the contract, I will start to look for local Hard Money lenders. However, I have been recently contacted by 3 other cash buyers since the listing I put on Craigslist. I don't think I'll have an issue with selling it.
This has definitely been a learning experience though, and I think I will put wholesaling off until I get my RE Licenses. I was told from the beginning I am NOT required to have a RE Licenses, and I am NOT required to be a broker to wholesale, but with this deal so far it's steered me to believe it would be best that I did get a RE Licenses. I only got into wholesaling to build enough capital to become an investor to buy/fix/flip properties, and buy/fix/rent properties.
It's a learning progress, and this deal already has me nervous because I don't have the funds to buy it myself, I was going in thinking since I found an amazing deal I could wholesale it, make my assignment fee, then move on.