Business partner wants to breach contract with my blessing

Business partner wants to breach contract with my blessing

Investor · Tulsa, OK · Member since 2016 · 21 posts · 1 vote

I have a signed contract with several people to be their gateway to free training with a national instructor, as well as a gateway to pre-approved lending on flips. I mentor them in addition to the professional training and offer field support.  The agreement specified a 24 month committment during which time we would split profits 50/50.  After 24 months they can fly solo or re-up for continued partnership support and source of financing.  To protect my time and financial interests -which are significant - the contract specified that the trainee does not have a right to terminate the agreement early and I can only terminate them for breach of agreement obligation or criminal/unethical actions. I have not breached my obligation to him but one trainee wants to terminate our agreement to each other after finishing his training but before he has done any deals with me, yet he is still  subscribing to the instructors training and lending site and his software.  If he intends to continue to pursue flips and wholesales for profit I feel he should honor the remainder of our agreement.  I don't think he entered into the agreement intending to break it, but he has become frustrated with a lack of initial success and the fact that the lenders tightened restrictions on first time flippers and now require 4 wholesale deals before lending for flips. For the record  I cannot afford to provide someone with training and funding at no cost to them so they can become my competition without any financial return to myself.  Any thoughts on how to approach him to preserve the partnership so that we each benefit?

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  • Flipper/Rehabber · Chicago, IL · Member since 2016 · 33 posts · 11 votes
    9y

    This business is tough! A lot of newbies get in with the wrong mentality. With that being said it is very tough to tell rather or not a newbie will come in and grind and have integrity and truly build the business. Personally from experience I would probably just let him go however, he may become a stud if he works hard enough. Did he mention why he wants to break his partnership?

  • Wholesaler, rehabber, landlord and coach · Saint Louis, MO · Member since 2011 · 33 posts · 11 votes
    9y

    You may just be wasting  your time thinking about what to do....most students fall out for many reasons because it requires them to make changes to  their lifestyle and some never can make the change....my suggestion move on and work with the students who are doing something....good luck

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