All Forum Posts by: Liron Yech

I am currently working with my dad to find off-market properties for wholesale or even flipping. I find all of the properties and make all of the phone calls. I also build rapport on the phone and set the meetings with sellers. I also pay for the operating expenses of this business (He's willing to and want's to pay for it, I just never asked him to yet). My dad does the funding in the case of a double close and he does the negotiating once we meet with a seller. He also finds buyers. We currently have a potential deal that could profit us 6 digits and we still haven't discussed how to split the profits. I'm assuming it should be 50/50 but I'm not sure since he has the money and connections, which is really important. I know my strategy in finding sellers is uncommon (I don't buy lists) and works really well so far. I know I should talk to him about it (We should have from the beginning), but I'm uncomfortable doing so. So I have a few questions.

This is our first deal by the way.

What split should I try for in the case he doesn't agree to 50/50? Have you ever been in this situation; if so, what split did you agree on? How should I approach him when asking about our split ("by the way, it's 50/50 right?")? Should it be a different split if we assign the contract rather than double close? He also mentioned a form of assigning the contract in a way that isn't shown on the sale agreement, so the seller won't know about it (we don't want them to demand more from our pockets when they see our profit, even though they'll be getting a price they asked for). Is this a thing? I only know about assignments (which have to be on the purchase and sale agreement, from my knowledge) and a double close. Is there anything else I should ask him in regards to running this small business of ours?

Another thing. My father and I don't see money with each other. He could ask me for 100 grand to help pay an expense and I wouldn't budge to give it to him. Mine is his and his is mine, but this is the first time we're in a scenario where the numbers are significant and we're doing business together. The first property we were going to find on-deal that we liked, we planned on moving (my immediate family, 5 of us) into and I wouldn't profit anything (I'm sure he probably would have given me 10-20k to boost my motivation and grow our wholesaling business after seeing an acquisition though). He would have the extra equity. This is what I mean by we don't see money between us. The answer is obvious to me in any other scenario where a parent of mine isn't my partner, but It's hard to see it in this situation. 

Thanks to everyone in advance and I appreciate any advice offered.

@Dwayne Poster

It could be that I'm experiencing repercussions of not being first in the lineup for an opportunity, but I would also like to look at different ways of finding these sellers (one that may be abnormal, but efficient), and see what works and what doesn't for others. I would love to hear your input though, on why you think paying for a list is a bad approach to finding motivated sellers and what the best ways to find those sellers are.

I am somewhat conflicted with the idea that wholesalers should only be looking for motivated sellers (preforeclosure, liens, divorce filings, etc.). I understand that with motivated sellers, you are more likely to get a better deal, but I also notice that there isn't much, if any, competition when it comes to "unmotivated" sellers. With motivated sellers, people are all lined up trying to get them to sell their property and the high demand, in turn, eats at the property's discount. Am I wrong? Are there not as many people as I'm imagining who are contacting them? My sole purpose as a wholesaler is to get a property for the best deal possible to the flipper and leave some meat for me (and do so ethically, of course). Wouldn't going the route with less competition be a good idea as well or is the opportunity cost not as desirable as I'm imagining? Thanks in advance.