Wholesaler renegotiated the contract after they assigned it

Wholesaling
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Wholesaler renegotiated the contract after they assigned it

Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes

So I’ve had this happen twice in a relatively short period of time and I’m a bit confused about it.

The first time it stood out I went and looked at a property and I told the wholesaler I could only give X and they guilt trip me saying they only was making 5k as it was.

So we did an assignment of contract and I agree that they needed to make something and it was a marginal deal for both parties.
Then the day of the closing I get the HUD and the wholesalers is making 15 K. So basically the Wholesaler renegotiated the original contract after they told me they was only making 5k and and showed me the contract. I disclosed to my lender that the Wholesaler was making 5k so then it made me look like I was lying to my lender when the HUD clearly showed the Wholesaler was making 15 K

I recently had another transaction where a Wholesaler renegotiated a lower price after the fact.

I’m assuming that where the wholesalers have that ability to make that extra is that they are naming the price that the buyer is willing to pay and not necessarily naming the dollar amount that they are assigning their contract for so this gives them the leeway to keep trying to get a lower price from the original seller, even after the fact of going through the motions of transferring their rights to the property to a new buyer.

Is this a common practice that you have seen and what’s your thoughts?

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
2y

It's called fraud by inducement. It's a crime to lie to someone to get then to enter a contract.

[email protected]301-893-4635Podcast Guest on Show #192
District Invest Group546 Reviews
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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    2y

    It's called fraud by inducement. It's a crime to lie to someone to get then to enter a contract.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group546 Reviews
    WebsiteView Page
    5Reply
  • David Ramirez
    Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
    2y

    Hey @Joe S., 

    If the wholesaler does not disclose in the assignment agreement that any price reduction counts toward the assignment fee, you are the one entitled to the reduction since you are taking over all the rights to execute the original agreement. Any addendum after you sign the assignment agreement will be your responsibility unless specifically stated in the assignment agreement.

    2Reply
  • Umme Shariff
    Lender · Member since 2024 · 4 posts · 1 vote
    2y

    It seems like they just did a double closing.

    1Reply
  • Joe S.Pro Member
    OP
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    2y
    Quote from @Umme Shariff:

    It seems like they just did a double closing.


     No, there was no double closing.

    0Reply
  • Joe S.Pro Member
    OP
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    2y
    Quote from @David Ramirez:

    Hey @Joe S., 

    If the wholesaler does not disclose in the assignment agreement that any price reduction counts toward the assignment fee, you are the one entitled to the reduction since you are taking over all the rights to execute the original agreement. Any addendum after you sign the assignment agreement will be your responsibility unless specifically stated in the assignment agreement.

     That’s what I assumed as well. I didn’t know if this was some normal twist that a wholesaler could possibly go for with the argument that I agreed to XYZ and if they got the seller down, it should be their profit..

    0Reply
  • Jerryll Noorden
    Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    2y
    Quote from @Joe S.:

    So I’ve had this happen twice in a relatively short period of time and I’m a bit confused about it.

    The first time it stood out I went and looked at a property and I told the wholesaler I could only give X and they guilt trip me saying they only was making 5k as it was.

    So we did an assignment of contract and I agree that they needed to make something and it was a marginal deal for both parties.
    Then the day of the closing I get the HUD and the wholesalers is making 15 K. So basically the Wholesaler renegotiated the original contract after they told me they was only making 5k and and showed me the contract. I disclosed to my lender that the Wholesaler was making 5k so then it made me look like I was lying to my lender when the HUD clearly showed the Wholesaler was making 15 K

    I recently had another transaction where a Wholesaler renegotiated a lower price after the fact.

    I’m assuming that where the wholesalers have that ability to make that extra is that they are naming the price that the buyer is willing to pay and not necessarily naming the dollar amount that they are assigning their contract for so this gives them the leeway to keep trying to get a lower price from the original seller, even after the fact of going through the motions of transferring their rights to the property to a new buyer.

    Is this a common practice that you have seen and what’s your thoughts?


     For frog's sake man.

    I am busting my *** defending wholesalers here in this forum and just like you look bad with your lender I look like an idiot defending y'alls asses.

    Come on people.  You are not helping here. Stop giving wholesalers such a gaadamn (deserved) bad rep.

    Sorry, this happened to you, bro.

    Not cool.

    0Reply
  • Jerryll Noorden
    Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    2y
    Quote from @Russell Brazil:

    It's called fraud by inducement. It's a crime to lie to someone to get then to enter a contract.

     Listen to Gru (Russel Brazil).

    He knows a lot of things!

    1Reply
  • Joe S.Pro Member
    OP
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    2y
    Quote from @Jerryll Noorden:
    Quote from @Joe S.:

    So I’ve had this happen twice in a relatively short period of time and I’m a bit confused about it.

    The first time it stood out I went and looked at a property and I told the wholesaler I could only give X and they guilt trip me saying they only was making 5k as it was.

    So we did an assignment of contract and I agree that they needed to make something and it was a marginal deal for both parties.
    Then the day of the closing I get the HUD and the wholesalers is making 15 K. So basically the Wholesaler renegotiated the original contract after they told me they was only making 5k and and showed me the contract. I disclosed to my lender that the Wholesaler was making 5k so then it made me look like I was lying to my lender when the HUD clearly showed the Wholesaler was making 15 K

    I recently had another transaction where a Wholesaler renegotiated a lower price after the fact.

    I’m assuming that where the wholesalers have that ability to make that extra is that they are naming the price that the buyer is willing to pay and not necessarily naming the dollar amount that they are assigning their contract for so this gives them the leeway to keep trying to get a lower price from the original seller, even after the fact of going through the motions of transferring their rights to the property to a new buyer.

    Is this a common practice that you have seen and what’s your thoughts?


     For frog's sake man.

    I am busting my *** defending wholesalers here in this forum and just like you look bad with your lender I look like an idiot defending y'alls asses.

    Come on people.  You are not helping here. Stop giving wholesalers such a gaadamn (deseSorry,

    0Reply
  • Jerryll Noorden
    Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    2y
    Quote from @Joe S.:
    Quote from @Jerryll Noorden:
    Quote from @Joe S.:

    So I’ve had this happen twice in a relatively short period of time and I’m a bit confused about it.

    The first time it stood out I went and looked at a property and I told the wholesaler I could only give X and they guilt trip me saying they only was making 5k as it was.

    So we did an assignment of contract and I agree that they needed to make something and it was a marginal deal for both parties.
    Then the day of the closing I get the HUD and the wholesalers is making 15 K. So basically the Wholesaler renegotiated the original contract after they told me they was only making 5k and and showed me the contract. I disclosed to my lender that the Wholesaler was making 5k so then it made me look like I was lying to my lender when the HUD clearly showed the Wholesaler was making 15 K

    I recently had another transaction where a Wholesaler renegotiated a lower price after the fact.

    I’m assuming that where the wholesalers have that ability to make that extra is that they are naming the price that the buyer is willing to pay and not necessarily naming the dollar amount that they are assigning their contract for so this gives them the leeway to keep trying to get a lower price from the original seller, even after the fact of going through the motions of transferring their rights to the property to a new buyer.

    Is this a common practice that you have seen and what’s your thoughts?


     For frog's sake man.

    I am busting my *** defending wholesalers here in this forum and just like you look bad with your lender I look like an idiot defending y'alls asses.

    Come on people.  You are not helping here. Stop giving wholesalers such a gaadamn (deserved) bad rep.

    Sorry, this happened to you, bro.

    Not cool.


     Are you drunk?


     Nah, don't drink.

    Hard to defend wholesaling when there is so much dishonesty going on.

    0Reply
  • Joe S.Pro Member
    OP
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    2y
    Quote from @Jerryll Noorden:
    Quote from @Joe S.:
    Quote from @Jerryll Noorden:
    Quote from @Joe S.:

    So I’ve had this happen twice in a relatively short period of time and I’m a bit confused about it.

    The first time it stood out I went and looked at a property and I told the wholesaler I could only give X and they guilt trip me saying they only was making 5k as it was.

    So we did an assignment of contract and I agree that they needed to make something and it was a marginal deal for both parties.
    Then the day of the closing I get the HUD and the wholesalers is making 15 K. So basically the Wholesaler renegotiated the original contract after they told me they was only making 5k and and showed me the contract. I disclosed to my lender that the Wholesaler was making 5k so then it made me look like I was lying to my lender when the HUD clearly showed the Wholesaler was making 15 K

    I recently had another transaction where a Wholesaler renegotiated a lower price after the fact.

    I’m assuming that where the wholesalers have that ability to make that extra is that they are naming the price that the buyer is willing to pay and not necessarily naming the dollar amount that they are assigning their contract for so this gives them the leeway to keep trying to get a lower price from the original seller, even after the fact of going through the motions of transferring their rights to the property to a new buyer.

    Is this a common practice that you have seen and what’s your thoughts?


     For frog's sake man.

    I am busting my *** defending wholesalers here in this forum and just like you look bad with your lender I look like an idiot defending y'alls asses.

    Come on people.  You are not helping here. Stop giving wholesalers such a gaadamn (deserved) bad rep.

    Sorry, this happened to you, bro.

    Not cool.


     Are you drunk?


     Nah, don't drink.

    Hard to defend wholesaling when there is so much dishonesty going on.


     Good for you.. I don’t drink either.

    1Reply
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