Business References Important?

Question

Hi All. I am negotiating a working relationship where I would infuse capital for marketing and potentially capital to close deals. I ran across a scenario where the potential partner did not want to readily surrender a reference. Supposedly this gentleman has closed a few transactions but was reluctant to provide a name, number, note, or email address of a buyer. Should I be worried? Thanks for reading.

Paul Jamgotch · Answer

Following up, Cameron provided the closing docs to show what he netted on a couple transactions. I'm confident he's closed the deals that he said he did. I never spoke to other professional references offered later as my interest in wholesaling was simply not the same after this review process. I wouldn't hesitate to buy a property that Cameron had tied up via contract.

In my opinion its important to speak to a person who has actually worked with a potential partner... that's the only way I know, without investing cash or time, to learn about what it might be like to work with an individual. In the end, this is a business about people, not just buildings, notes, and land.

I still do not have is time to execute the hunt, rehab, and sale of a property. Therefore, I'm still looking for partners who might need cash for short-term projects in the Grand Rapids area.

Cameron P. · Answer

Wow guys sorry about all the typos, that's what happens when your typing fueled by overwhelming emotions haha.

Cameron P. · Answer

I am going to jump out there and say I am the wholesaler. Now the reference he requested was the buyer of my first transaction. Which I did not like but was even even going to give him it. I contacted the buyer and got the go ahead. But I was pretty hesitant and continued to @Paul Jamgotch  what the conversation was going to entail (A quality buyer for a wholesaler is as good as gold).

@Joe Gore l Owens

Like I said I would do it but ever unhappy about it. After Pauls BS meter went off because I was pretty considered with was going to be exchanged. Special after finding out that the main reason for the reference was just to confirm the deals were done. I also offered to send him closing docs prior to his BS meter went off. As of now he has already received those as well. But the skeptical nature that arose in Paul was based off of a wholesaler not wanting to give his quality buyers information for a reference to confirm transactions. (it did not make sense to me) When there are first of more effective means of proof and less data invasive contacts. ie. escrow officer, closing docs, bank statements with the deposits, speaking with others on my power team, ect.

Account Closed · Answer

Paul,

Talk to his title clerk but they might not give it in writing.

Joe Gore

Paul Jamgotch · Answer

@Joel Owens

Thanks for the input.  I should add that he is a wholesaler so he is probably concerned about me stealing a buyer. However, I have a 9-5 and no inventory so maybe I'll have to get him to understand. He has offered his title clerk so that is something to start with.

Joel Owens · Answer

That wouldn't sit well with me. Either they haven't closed any deals and are puffing or they have burned relationships with others in the past and do not want you talking with anyone.

If you do good business you will have plenty of good references. If you screw people then you will deflect when asked about track record and references etc.

An outside chance that they are worried about you pilfering their database but you can sign a non-disclosure and anit-compete agreement to fix that. Never go by blind faith if your BS meter is going off in your gut there is usually a reason.