How Do I Protect my Deal?

[Jason Aycock]

If I uncover a big deal that's beyond my personal financial capability, what are some specific, safe, legal, and minimal-cost tactics to use against the seller/owner to secure my deal while I investor/partner shop? ie...secure the property for me and buy me some time to find a partner? Minimal cost is key...I need protection and security that the deal is mine to give me the most leverage when negotiating the equity positions among partner(s) I find without them circumventing me in the process. Thanks. Y'all are great btw.

[Stephen McKee]

Consider doing the deal backwards if you can't get an option. Use this deal as a way to shop investors even if it falls apart. You'll find that everyone has a different return expectation. If someone needs a 20% return and another will take 12% on a deal you clearly want to work with the investor expecting the lower return. You can bid higher and make a larger wholesale fee. In wholesale deals I've emailed as many as 12 investors at once to get their highest bid. Then I give the deal to the highest bidder. This also prevent what I call "deal lag." If you only ask one buyer at a time to do their due diligence it could cost you a lot of time. If someone is cutting you out of the deal chalk it up as a thank you and never call them again. If someone brings me a deal they are valuable to me. I want to make sure they get paid so they continue to bring me deals.