Wholesaling Advice Needed: Navigating Buyer Recommendations

[Jevani P. Barron]

Hi BP community,

I’m relatively new to wholesaling and currently have two properties under contract with the owner. Both properties are located on the east side of Houston and present solid investment opportunities. I’ve already found some potential buyers interested in the deals.

However, one buyer has recommended that I terminate my contracts with the owner and instead work directly with them. They’ve offered to pay me a fee if I go this route. While the offer sounds tempting, I want to ensure I capitalize on these contracts fairly and effectively.

Here are my main questions:

Should I entertain the idea of terminating my current contracts, or is it better to stick to my original wholesale plan?

What strategies or precautions can I take to protect myself and ensure I maximize the value of these deals?

Are there any red flags I should watch out for when dealing with buyers who propose alternative arrangements like this?

I want to make the best decision while honoring my agreements and maintaining professional integrity in this deal. Any advice or lessons learned from more experienced wholesalers would be greatly appreciated.

Thanks in advance for your help!

[Jerryll Noorden]

Do not terminate the contract.

My first and immediate question to them would be "WHY?!"

"You are asking me to extinguish any leverage I have and left vulnerable for anyone to steal the deal from under me". 

The fact they ask you to do this is not only a red flag for obvious reasons, but also because, they should know better how risky this is for you and if they had true good intentions they would have understood that and not offer you that option.

What you can do is tell them.. "pay me double of my expected assignment fee upfront., or in escrow and I will terminate it. If everything goes smoothly, I will pay you back all the overages of that double the escrow.

I'd be interested what they would say to that!