OfflineI have read the posts about getting in place Bird Dog Agreements with the wholesaler or investor, and I understand this. But now I am ready to wholesale properties. I am looking to work with several Investors. I have been calling the homeowners or listing agents, and I fill out a Property Information Sheet while I have them on the phone. I then start researching comps and growth potential in that area from several sites, but not the MLS since I am not a realtor. My next step is to call back the person I spoke with and negotiate on pricing, taking into consideration any repairs, etc. I let them know if I want to move forward, I will be making them an offer.
Since I want to assign these kinds of properties, I have been calling investors, many who have access to the MLS to see if they have an interest. Immediately they want the address to check the comps for themselves. Since I haven't locked up the property yet, I feel they could go behind my back. My question is "Shouldn't I get some sort of Non-Disclosure/Non-Circumvent Agreement in place with any investor before giving them addresses and phone numbers to properties that I am already working on? If so does someone have a copy of this kind of Agreement? And should I have an Agreement for each property seperately or could one Agreement per investor protect me? As far as locking up the property, if I do have a contract with the seller with an assignment clause in it and I am working with an investor, again what can stop the investor from going directly to the seller, since the seller can still sell the property on her own even though she has a contract with me, correct? Sorry for this long posting, as you can see I am confused about this. Thank you for any help that you can give me.
under contract the property is technically yours for how ever long you've got it under contract for( 15days, 30days ect.) That's why we say "lock" the property up, so you are the only one that can buy or sell it between that time period. And thats why you've got your escape clause in place in case you can't find an end buyer within that time period so no one loses, the seller gets his/her property back and you move on to the next property. Hope I was of help to you but keep up the hard work it will pay-off in the long run
Lock the deal up first then give that info out. You not only need to protect the deal from the investor you are talking to now, but others who you are not talking too. Yu could have them sign a non-circumvent agreement, of course that wouldn't stop anyone else that you have not come in contact with that might be interested in the home. So there is your first problem, what you need to do is lock the property up first in your name, then give the addresses out as well as any research and analysis you have done on your own to show you are competent to the investor. This should help with confidence in you and possibly future deals. However, you don't want to do things like this backwards. Get your investors criteria first, that way when you do lock a property up, your investor is already ready to move forward, instead of having to rely on your out clauses and scrambling for someone to purchase the deal from you. (not say you shouldn't still include out clauses). If you know what they want, it will be easier to sign the deal over. THat way spending money and time on advertising and searching for someone to take a look at what you have doesn't become cumbersome, especially since you have a time limit.
every property you have in affect should have an agreement on it. Everything needs to be in writing always.
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Thank you for your reply. For some reason I thought I still needed a Non-Circumvent/Non-Disclosure Agreement; but it sounds like locking up the property is the only way to protect me. Unfortunately, I am finding if there is an agent involved in a deal, they are asking for a large earnest deposit to lock up the property that right now I can't afford, at least not until I get my first deal. I appreciate your help.