A helpful tip when wholesaling/assigning contracts...

Great tip and something i would have ever thought of ty nick.

This is a great tip, thanks for sharing it!

THANKS for that tip and i hope people use it,thanks for the knowledge,

Thank you for the information! I didn't think of the repercussions of what could happen if you assign to another assignor. That's such great advice! Thank you so much for sharing.
-Allison

thanks Nick,

also, when you have an investor tell you to put them on your list, do so, but also ask them what type of property they are looking for specifically; i.e. area, SFR or multiple units, sqft,#bedrooms/bathrooms, price range, fixer upper? what type of rehab, cosmetic? total? how many deals a month can they buy? how quickly can they close? how much profit do they want to make on each deal?
The more details you can get from them the more likely you will be able to find them a deal.
If they cannot answer the above questions specifically, then they probably are investors looking to further assign your deal.

Learning and progressing every day,
Valerie

All I do is require a non-refundable earnest money check. That separates the bull from the buyer in an instant. I tell people I don't mind them bringing in a buyer, they just have to have them and their money in advance. I provide the deal, if it fits their criteria then they can buy, if not they can look at my next one. I keep it very simple.

Michael Mangham
MD Home Acquisitions LLC

Thank you Nick for your post on other people flipping your deal. And also thank you Michael Mangham for your tip on requiring a non refundable earnest money check to tie up your deal. A fellow investor told me when he deals with buyers he likes to have some of their "skin" in the deal to quarantee they are serious and it makes it difficult for them to back out. I'm a newbee so thank you both. Jersey Jer

You're all welcome... it's just something I learned when I was new, and if I can help a few others not to have the headache of thinking your deal is sold, then find out later it's not, I want to help.

Like I said above, I have NO problem with people "flipping" my deal, the more people out there trying to find a buyer, the more likely I'll get paid... I just want to know about it and have the right to sell to anyone else that comes up with "real" money 1st.

So give these guys an option, but make sure it's "non-exclusive" and can be cancel-able by the seller.

Nick

Wow, Thanks for that Nick this question has gone unanswered for a while to me. After joining the success Academy i was wondering this exact thing and asked about it but never received an answer and now I know it is a valid concern.

So basically, this means that almost all my list of "Cash" buyers that I've worked on are all doing assingments of contract, What an AHA Moment! (laughing out loud)

Why don't they just tell you upfront that they wholesale 80% of their deals to other investors?

----Kathy

I don't think anyone have thought that far ahead. But you are right. I will have to keep that in mind when as i am building my buyer's list. it kind of forces to keep people honest.

Can you give an example of a form you used with that exit strategy? It would be helpful.

I would only add to the criteria of your buyers whether they are buy-hold-rent or buy-rehab-flip. Will make a difference in your offer and margin for buyer and your personal profit. Property will suit one buyer better than the other.

Great info above from all and NICK!! Thanks for info VERY important and immediately useful.

As Michael Mangham said: Be sure by getting the NON REFUNDABLE em and make it big. This stops it all!

Thanks for the insight Nick & Mike! I hope to implement this into what I'm doing, with great success. Wishing great success to everyone!

Once I told him I required non-refundable earnest money deposit, he told me that's not the way they do business & they require their to be refundable. How do you deal with a buyer like that? He also told me if the deal didn't fit his criteria, it may work for any of his other buyers. Thanks!

It is what it is. If the buyers are serious and WANT the deal, fine. Require the NON Refundable EM and they will pay it or shut up.

Tell them you have other investors/buyers that want the deal and its 1st come, 1st served. I've been stuck a few times by so called buyers that did NOTHING but try to find a buyer and tied up my deal and wasted my time.

If the deal works for one of his buyers-great, assign the contract to him and let him deal with his buyer