How can I be transparent with the seller?

Question

How can I be transparent with the seller when wholesaling without him backing out, because there’s states that require that I should be transparent with the seller.

What if I’m not and we close on the deal?

Lien Vuong · Answer

You can be transparent with sellers by positioning and scripting what you say to him. For example: instead of saying you're going to sell the contract, explaining to him that your job is to find an investor client who will pay you a finder's fee to secure the deal and get the seller his number while creating a smooth transaction.

Ethan Neumann · Answer

Tell him that you work with financial partners that you leverage for deals that you can't flip yourselves. Most people aren't opposed to the fact of you assigning the contract as long as your script positions what you are doing correctly.

Personally, we just act as if we are closing on the deal to ease the seller's mind, but we have friends in the industry that tell all of their sellers they are looking to assign the contract before getting it under contract. Again, it all just comes down to how the script positions you. If you need help with this wording, I would advise watching some of Jerry Norton, or Max Maxwell's, videos on script building. A lot of good information in there.

Matt Devincenzo · Answer

I've never wholesaled, but have purchased from a few...I have always had sellers that KNEW what was occurring, and honestly would probably never buy from someone that doesn't. None of the sellers ever felt taken advantage of because they knew they sold for less than the open market, but it solved their problem. One was a probate, and the other brother had caused issues, and cost him money to resolve them several times. The seller was just happy to have the issue squashed forever, and not worry about having to spend more money to fix problems. Another was a pre-foreclosure in late 2007 (he made out like a bandit in hindsight) and was happy to avoid a foreclosure. That's who a wholesaler is good for, someone with a real issue that wants your investor connections to solve it and knows you're solving it for a fee. The others aren't worth doing business with.

My Mom was under contract to sell to an 'investor' that was really a wholesale operation, and she entertained the charade because it was a hard property to sell and she figured maybe someone on their list would be interested. They were a bunch of jokers, and didn't know their head from a hole in the ground...it was worth seeing the other side of the operation just to know that IF they had ever been upfront and honest on what they were trying to do, she probably could have adjusted price to help just move the property. But instead they wanted to mess around and play games, so she just waited out the contract and eventually was able to sell it.

Jonathan Greene · Answer

If you are asking "What if I’m not and we close on the deal?" I think you are already going down a rabbit hole that will end in failure. There are so many unscrupulous wholesalers, so if you want to be a good one you just need to perfect the dialogue that shows that you are necessary conduit to a list of vetted investors and for that, there is a fee. Explain what you do and when you step away and since it's not a listing, you have built in safety over realtors trying to list it.

Harris Trail · Answer

@Mike Baxter @Ethan Neumann A lot of wholesalers don’t inform the seller they are assigning the contract before getting it under contact. Probably not the best habit, but honestly speaking I don’t know any wholesalers who actually tell the seller that upfront. Maybe ive been doing it wrong this whole time haha, how do you word it when talking to your sellers?

How can I be transparent with the seller?

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