Honesty Is Always The Best Policy

Sometimes I think real estate wholesalers get a bad rap. Whether it's from investors,agents,sellers you name it we usually get flack. But a lot of times it is warranted that's because a few out there aren't really honest and up front to their sellers about their intentions. I always believe that if you are honest and up front not only do you show that you can be trusted but it gives you a blanket of security just in case the seller turns around and decides to sue you for fraud.

I want to share two key factors in order to not only show your true intentions and create some sort of trust but to keep you out of legal hot water.

1.Always be upfront and honest with your seller

This is extremely important. By telling your intentions that you are going to assign the property to another buyer you not only tell the truth but if the seller agrees to it than you'll know he or she is very motivated and doesn't care. If he or she doesn't like that idea than move on their not motivated enough. This also shows that if they agree to allow you to assign the property than(I suggest saving all email communications and recording any phone conversations for future evidence just in case one decides that you should visit the court house)than any future litigation you will have proof that the seller was aware of your intentions.

2.Include clauses that state your intentions

First this is not legal advice so I suggest contacting your lawyer if you do decide to add clauses to your contracts just to make sure you are nice and legal.

With that being said. If you add certain clauses like say "the buyer has the right to assign the contract to another buyer" or "seller gives the buyer the right to assign the contract to another buyer" it's now in writing and the seller can't go back and say they were duped and lied to about your intentions.

Now I know that all contracts are assignable unless stated otherwise but this is a good clause to have(and you want them to initial it next to the clause)so they know up front what your intentions are in the contract.

Sometimes honestly is indeed the best policy. By being upfront with what you plan on doing to the seller you are keeping yourself from getting into trouble,your determining whether or not a seller is really motivated and you are creating trust because you are open and honest about your plans.

You might end up doing less deals this way but I rather do a few deals and keep myself in check versus doing a lot of deals and run the risk of seeing some guy in a black robe with a gavel because I wasn't truthful enough.