First wholesale deal questions

[Kelly Howard]

I was working as a bird dog for an investor who was quite dishonest, but that's another story for another day...While I was calling sellers for him, I connected with an out of state investor who is wanting to buy 4 plexes and asked me to contact him if I came across any and today I did. It's a steal of a deal and I would buy it myself if I could. I was going to contact him and give him the lead and charge a bird dog fee, but I think, I'm going to try to do it as my first wholesale deal instead.

I have several questions. The property doesn't need any repairs. So how do I analyse the deal?  I don't have to worry about figuring out any repair costs. Tenants are all in place with great rental income. Do I have to pay a earnest money deposit on the property when I do my contract and if I do, if the deal falls through for some reason, do I get it back? Secondly, I've been reading lately, that when I do my assignment contract with my buyer, that I should require him to pay an earnest money deposit. It makes perfect sense to me that he should pay one, so I know he's serious and doesn't leave me hanging at the closing table. Have any of you wholesalers done this with your buyers?

When I am talking to my seller, do I just  tell them up front that I am wholesaling the deal? Last question. lol...Where can I go to print up the correct contracts that I'm going to need for this? Sorry for all the questions and I appreciate any help!

[Brent Coombs]

@Kelly Howard, do you want to be labelled dishonest yourself? If the ONLY reason you made the first call was because you had an arrangement to give your leads to your "quite dishonest" investor, then like it or not, I believe you should give him that lead, and charge him that bird dog fee (I believe NC is fine with such arrangements - but please check).

How do you think it will end if your dishonest investor discovers what you have done behind THEIR back? The "but they were dishonest first" defense will hardly cut the mustard, will it?

Looks like you are not really ready to jump in at the deep end either?

You obviously need to formally end your dealings with said investor, but maybe AFTER this fee is sorted?

Chances are they won't get the deal happening anyway, by which time you should be better prepared when you re-establish communication with the Seller? [Not legal advice]. All the best...