What agreement can I use with another wholesaler

[Khalid Johnson]

Recently I advertised a few wholesale deals and other wholesalers would call me. The other wholesaler would be interested in wholesaling the property to their end buyer. This would mean there would be two assignments of contracts. I figured this would get somewhat complicated with two middlemen (myself and the other wholesaler). To make a clean transaction, I always suggest that I deal with the wholesalers end buyer directly and pay the wholesaler his fee after the deal closes. What type of agreement do I need with the other wholesaler and where would I find one online that I could use. :D

[Demos Loizides]

Khalid - in your first thread, you were the first wholesaler. In your last thread, you're the second wholesaler. Then you asked about the option going to closing. Technically, an option isn't a contract to buy property. It's an option, but not an obligation. If you're the optionee on an option, you would have to exercise your option to purchase and create a contract. The contract would go to closing.

If you're the second wholesaler with an option to purchase property from the first wholesaler, it will usually be a non-exclusive or flex option. There probably isn't a whole lot you can do if the buyer goes behind your back to work out a deal with the first wholesaler. However, I think most investors don't want it to get out that they screwed over another investor. I believe and hope there's honor amongst us.

If you have an option to purchase agreement with the onwer of a property, try to get an exclusive option. This way, they have to sell you the property, but you don't have to buy it.