Exclusivity contract with wholesaler?

[Adrian Rae]

Hi everyone,

We recently stumbled across someone who flips properties, wholesales, is RE agent, etc. he has offered to find us investment deals in Southern California off the MLS that he would purchase in cash and then contract over to us and proceed with a traditional mortgage company (apparently this is what he does for other investors) He said he would not charge us the 10k fee he normally would (maybe bc we have a mutual acquaintance??) but he would require an exclusivity agreement. So we wouldn't be able to work with our agent (he works off the mls) anywhere in so cal or find our own deals.

Is an exclusivity agreement normal for a wholesaler? What if he doesn’t find anything for months and we’ve lost a lot of time just sitting around waiting for him??

Also - he does own a construction company so he would “run the numbers” and incorporate any work that needs to be done, ideally by his own company…

Thoughts on this? Seems too good to be true - what’s in it for him?!

Thanks fine BP folks!

[Will Barnard]

I give him credit for the attempt, sounds like a wonderful deal for HIM. For you, horrible idea. Why would you agree to exclusivity? If you find a deal through another source that he has not yet showed you, you should have every right to move forward without him.

As to your comment of “sounds too good to be true”, that only holds water for him, not you.