Lead sharing after dead deal - Insider Trading?

[Account Closed]

Lead Sharing - Insider Trading?

I've noticed that when I receive a lead for a wholesale deal sometimes it doesn’t end with a sale. Why? Well, for a million reasons...the homeowner is not motivated to sell at a discount, the homeowner is unreasonable regarding the actual value of their property and on and on... However, sometimes, to be honest, the homeowner and I don't always click or I say something that they cannot get over or forget. For example, I remember quoting one homeowner a price for their duplex after they flat out refused to tell me what they thought their duplex was worth or what they would accept. I normally try to at least have the owner give me an idea where their head is at regarding value and the amount they would like to walk away with. So, I had to start with a number...The deal was over as soon as the price came out of my mouth. I thought it was a good price and I backed it up with comps and repair costs, but the property owner could not get over it. He kept repeating the number over and over and was insulted. I wish I could go back in time and say something different. Something like, well I think it might be worth XXXXX but I can't pay that much for it based on estimated repair costs. Based on my current lending parameters and what my partners and I are willing to extend towards this project, I could offer you XXXX. I guess my point is that the deal was dead, he was insulted and anything I said was not going to be received well. O’well, move on, right? And that’s what I did. But after thinking about it, I thought, I located a motivated owner, who wants to sell now and contacted me after receiving a mailer, and I’m sitting on that information. The owners problem isn’t solved, he didn’t sell his duplex...and I didn’t make any profit from the dead deal. But...maybe someone else could. Maybe, I could pass this lead to another individual, arm them with the knowledge of the owner (pride, etc) and they may have a different outcome. And maybe, everyone would win, the owner would sell his distressed property and myself and the individual I passed the lead to would receive a profit. Some profit is better than none, right? Why let the lead die. Unfortunately, the story doesn't have a great ending because I passed the lead to an associate and didn't follow up. Dumb, I know. But like I said, I moved on. However, I plan to use this strategy (Lead Sharing) in the future but will enter into an agreement when the lead is passed (follow up) and share the profit. Thoughts?

[Tom Gimer]

Keep the lead. Situations change.

That lowball offer will look much better when the seller has x days to find cash or lose the property to fioreclose, tax sale, pending litigation... or when the seller's out of state heirs are involved, etc.