Anyone use Non-Disclosure/Non-Compete Agreements?

[Marc C.]

Hi, all you experienced investors out there. Here's hoping you had a good holiday yesterday! 

Question: Do you ever use a Non-Disclosure/Non-Compete Agreement when dealing with preliminary information about a property? I'm trying to prevent prospective partners from learning the address or ownership of a property unless they've agreed not to disclose it or compete with me in the deal. 

Specifically, I have been negotiating for some time with the owner of a medium-sized building. The property is not listed and was found through the efforts of my partners and I. We have agreed to a price and terms (master lease w/option), but due to the holidays and the health of the seller's attorney, we haven't yet signed our Master Lease and Option Agreements. As this deal is too big for me to take down alone, it's now time for me to invite others into the deal. (Other investors who I do not know personally, but who have expressed interest in investing in multifamily via our REIA and Meetup groups. They may be passive or J-V partners' we don't know yet.)

Since I don't know them, I don't trust them. This deal is good enough that an unscrupulous investor might be tempted to contact the seller directly and go around me in the deal. So it seems fair to me to ask these prospective co-owners to sign a Non-Disclosure and Non-Compete Agreement BEFORE I give them the address. My agreement requires them to pay specific damages if they violate the Non-Compete portion, and a court could also assign nonspecific damages for violations of the Non-Disclosure portions. Here is a PDF of what i'm thinking:  https://drive.google.com/file/d/0B2KLRk8_UF6xejByO...

It's basically one I've used in non-real estate business transactions in the past, customized to real estate and this situation. What do you think? Do you use such an agreement in your preliminary deals? Or are you one who believes that NDA's like this are hard/expensive to enforce and therefore not worth the time? If you think it's a waste of time, do you have any other suggestions for methods one can use to disclose a property's details to prospective investors or assignees but still remain protected? 

Thanks to all who can provide input on this topic. Let's have a great 2017! 

Marc C.