I just completed my first wholesale deal with a guy with whom I met and It feels so off from which he's doing things. He's busy and so am I so we usually text. He's agreed to coach me so to speak with three deals split in half. I brought a package of 5 worked the seller to 23k. Originally said we'd get 5 a piece. Seller went up on price and he told me go up he still had a buyer. We nailed a contact with two weeks. It's now a month later and things are just getting done. Whenever I'd ask how close are we to closing he'd beat around the bush and I never got a real answer. My seller started flipping out because we went a week over closing and I couldn't give a full answer since my mentor didn't give me one. He finally comes out and says first buyer didn't want to buy because of the price increase. But the whole time he kept assuring me that they were ready. Now it's time to get paid and I want advice because he wants to have everything wired to his account. I'm on the original contract seller myself and him. I didn't sign the other contract with the buyer; however I confirmed with seller that closing had been done. In my understanding I would get my own personal check from the closing company and he would his. He also says it's because it's good company on the contract as to why.One last thing is we have a signed contract for the three deals we do but I'm not feeling comfortable in working with him no longer since I was left in the dark for so long and huge lack of letting me know how things where processing on his side. He also told me that instead of the 2.5k it would be shaved off about 300 because of something or another. And I told him fine i just need the check and prefer to have it instead of waiting on it to get to his account or however it would work. Is this a normal thing or should I call title Co and find out if he's trying to get one over
@Jeremiah M. It may be worth it to look into transitional financing so that you can close the original deal and then close it again with the end buyer. If your name is on the contract it's your deal.
I'd also recommend finding a new 'mentor'. Sounds like this one may be taking advantage.
@Jeremiah M. This sounds shady from start to finish.
I'd start by buying an hour with a real estate attorney to see what legal obligations you're entangled in. If you're not tied to this supposed "mentor" by contract, I'd leave him in the dust.
You might also check to see whether wholesaling is legal in Missouri. In most states, it's not - unless you double close.
If it feels wrong, something is wrong. Great advice above. Sometimes being new makes it hard to ask the right questions because you don’t want to sound stupid.
If you have questions about your deal, you have to engage the title company or closing attorney and get the answers.
If you have concerns on the split on the b/c deal have them (whoever is closing) cut your portion in a separate wire or check. The closing documents HUD statement should give you the amount you will clear after expenses so your share should be easy enough to figure out.
If nothing is in writing, if may be harder to get your cut at closing but that should make it easier to end your relationship and move on.
@bob Yes my contract with the seller is in writing.i have a copy of that and also the contract with him
@bob Yes my contract with the seller is in writing.i have a copy of that and also the contract with my mentor. To me even though I'm originally on the seller contract and not the buyer contract I should still get my own check and have it routed through his
Updated over 1 year ago
I'm just not on the assignment contract also so would that a be a reason why it would be in his company's name and I don't get a separate check
If you didn't sign an assignment contract with the buyer, then he shouldn't have been able to close on "your" contract. I'm guessing when Your contract went past the closing date, due to non performance on your part (showing up with cash to buy) it died, your "mentor" signed a different contract with the seller, and you are out in the cold.
It's still the same contract didn't even have contact information only I did. There's a clause in his contact that enables the deal to be too go past closing of needed
@Jeremiah M. what happened with this deal?
@Bob McGhee I love to explain full situation in private message or do you simply mean did i get paid, yes i did just not as much as i shouldve
Alos got paid but it was split from 2200
@Jeremiah M. It sounded like it was going to end badly for you. Glad you got something for all your trouble. I would be interested in the story if you can share
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing