#Need Help w/Wholesaling Contract today

It will have to be a purchase contract and then you assign your contract to your buyer.
I would suggest you to follow the advice Kareng who is a top user on dg.com just shared with me now. she was like "When another wholesaler has a property under contract and you make an offer and get it under contract, add your fee and offer to your buyer, this is called a "daisy chain". Not usually a good situation to get into because, as you found, it puts the deal out of range numberwise.

Try this instead. Contact the other wholesaler and ask him/her if you bring a buyer would they be willing to do a 50/50 split with you on the fee he/she will be making. If he/she agrees get it in writing. Then if it brings your numbers down enough to be in range for your buyer, go back to him (buyer) and tell him you renegotiated a better price on the property and would he like to reevaluate the deal?"

Hopefully she sees your post and share her thoughts..

I hope it helps

Good luck

Msmonique, I would split the wholesale fee with the other wholesaler 50/50 or whatever you agree to & just sign a assignment contract with your other wholesaler on there stating they w/get 50% if it's a 50/50 split & you getting 50%. That is how actually how I did it with my 2nd deal & I got paid out of closing, in other words you draw up the assignment contract with your other wholesaler & have you buyer sign it & send it to escrow & get paid although I am going to get paid by my buyers upfront non refundable next time or at least get half of the fee.

Any thoughts anyone?

PS TC is right

Thanks for the advice!

Here is an update. The wholesaler stated we can split the profits 50/50. He stated he will add my name to Assignment Contract. He wants me to market it to my buyers, and once I have someone that's interested we can sign contracts. He got the property under market price. He's stated whatever I price to my sellers we'll spilt 50/50.

Pls advise.

Thanks

DG family,

Any other suggestions???

This is a copy of the PM I sent you in answer to your PM (there are a couple of minor edits on this one), but I am going to post here also to give the info to others in same situation.

"Monique,

Is this wholesaler the ORIGINAL person to have signed purchase contract direct with the seller? If so, first of all make a contract between the two of you stating that if you find a buyer for 123 Main Street that you and Joe Wholesaler will split 50/50 any amount received over $_____ (price he has property under contract for). Both of you SIGN and DATE that.

Then you will use an Assignment of Contract. Joe Wholesaler and the end buyer will be the ones who will be signing that. I usually require my end buyer to give me the non-refundable assignment fee in the form of a cashier's check at the time that we sign the Assignment Contract. Make sure your Assignment Contract DOES state that it is non-refundable. That way he is MUCH less likely to back out of the deal. Some people wait and don't get the fee until the closing.

Then you give the end buyer a copy of the Assignment Contract AND a copy of the original Purchase Agreement.

Then YOU or Joe Wholesaler take the original PA and the original AC to the closing entity in your state (escrow/title co, atty, whoever does closings there).

You part is basically over. But I would still stay in touch with escrow (Joe will probably need to do this. since his name is on contract) until everything is done, just as good customer service, in case there are any kinks.

Let me know how it goes.

Karen"

Hi Karen,

I just sent you another PM. Can the original wholesaler add me to the original contract between him & the seller? Or, is it to late for that?

Also, do you have a contract I can use to have me and the wholesaler sign stating we will split 50/50 anything over Contract price.

Thanks!

You can just use an Addendum to add you as a buyer if you want to go that route.

Just say something like "Monique _______ is being added as an additional buyer on the Purchase contract on property located at 123 Main St, Anytown, NC, between Sally Doe (seller) and Joe Wholesaler (buyer) dated 12/01/2013." Both of you and the seller will have to sign and date this. Give seller a copy and you guys keep one. (get a copy of everything for you also)

Then just proceed with the Assignment Agreement when you get an end buyer. Both of you will have to sign as assignors in this case.

If you do the addendum, you do not need the other contract.

If you decide to use the second, 50/50 JV contract, just type up something like I said before and both sign and date.

Just as a disclaimer, I am not an atty and this is not to be construed as legal advice. Just trying to help. This is actually a pretty simple process.

Karen

Thanks for elaborating on this post.

I had to take down some notes and save this in my email draft box in case in the future I fall in this kind of situation

I admire your words of advice

God bless

Hi DG family,

Here is an update: I signed the Contract today with the wholesaler. (Whoohoos!) I'm sooo excited!

*********Thank you! ~Thank U! ~Thanks! ~Thx! ~Thank you! ~Thank U! ~Thanks! ~Thank U and U and you, and U!!!!!!************

To all my DG fam!

Now, I just have to get this house sold:)

SF 2 bed/1 bath
Sq ft: 1600
ARV $80k
Repairs approx $20k
Asking Price: $20k