Wholesale Deals: Potential Unscrupulous Buyers

Wholesale Deals: Potential Unscrupulous Buyers

Investor · Tampa Bay, FL · Member since 2023 · 42 posts · 11 votes

I’m a wholesaler and was told to NEVER leave a potential buyer and seller alone together during a walk-through because the buyer could go around me and try to steal the deal.

QUESTIONS:

  1. If I’m under contract with the seller and it’s filed with the title company, how could a buyer do that without it being breach of contract by the seller?
  1. If this potential buyer were unscrupulous, they could easily contact the seller afterward so why do they need to be watched closely during the walk-through? There’s a reason why they’re “unscrupulous.”
  1. If a potential buyer made an agreement with the seller in writing while the seller and I were still under contract, I didn’t find out about it, my contract with the seller expired, and this buyer then essentially steals the deal from me. What recourse would I have at that point?
  1. Is there any way to prevent this from happening?
  1. Is there anything else I’m missing or need to be aware of regarding bad actors?

TIA for your feedback!

P.S. If I don’t succeed as a wholesaler, I would probably fare well in Risk Mitigation/Management, lol!

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  • Lender · Chicago, IL · Member since 2021 · 424 posts · 145 votes
    2y

    Build relationships and don't treat every person as a transaction, and these types of things won't happen to you.

    We lend to plenty of investors who use the same wholesalers time and time again and don't try to do any of these things because the numbers work for everyone.

    Build a quality book of business and none of these things will be issues.

  • Investor · Tampa Bay, FL · Member since 2023 · 42 posts · 11 votes
    2y
    I recently pivoted from wholesaling in Pasco County, FL to Tallahassee so I don't know any buyers there yet. Once I do though, I agree that building good relationships with them is key. Having good, mutually beneficial relationships with all the right people is paramount for success.

    Thanks for taking the time to reply to my questions!
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