What terms and clauses when wholesaling deals to developers?

Question

I want to begin flipping wholesale deals to real estate developers. Do you know what terms and clauses would be good to include in the contract?

Matthew Paul · Answer

A seasoned developer will go around a wholesaler  and go straight to the owner  .  They know the game , and have access to money .

Jay Hinrichs · Answer

@Greg Dickerson

99.9%. Are not going to be able to bring value to an actual developer agents with valid listings do far better or agents with off market.   I don’t see value a wholesale person would bring other than maybe a modest bird dog fee. If a property in a brisk market can be developed.  Realtors and developers are way ahead of the wholesale crowd.  I have flipped plays but I put up all the risk money    Most guys would just wait out wholesaler and go direct

Greg Dickerson · Answer

Agree 100%

Tiara Elise Hatley Williams · Answer

@Jay Hinrichs I agree! Bird Dog fee is the way to go. Do you have bird dogs on your team?

Greg Dickerson · Answer

Yes houses but not raw land. It will be hard to sell the contract unless you have something really unique in terms of location or value. There is much less competition for land.

Greg Dickerson · Answer

The more info you have the better but yes the buyer will do their own due diligence. It will be hard to sell the contract unless you have something really unique in terms of location or value. There is much less competition for land.

Shelby Washington · Answer

@Greg Dickerson

Thanks for your expertise. I've asked over 15 developers this question and no one had such a well thought out response like yourself. I appreciate your expertise. Have you purchased properties from wholesalers in the past?

Kris Lewis · Answer

@Greg Dickerson thanks for your insight. So, I have a 2.1 acre property under contract. I'm looking to wholesale this contract because I won't have the time to dedicate to getting back into development until later this year. Should I be providing more to potential buyers? I've had a few investors ask me for a survey but I've always seen this as part of the end buyer's due diligence.

Your thoughts???

Greg Dickerson · Answer

@Shelby Washington you need to make sure closing is tied to any rezoning, permits or other approvals needed to develope the property. Time is the thing that’s most valuable to a developer.

Also use a shell LLC to tie up property in case any issues arise that result in litigation. That way it will it affect an actual operating  business.

What terms and clauses when wholesaling deals to developers?

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