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Updated over 1 year ago on . Most recent reply
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Experienced Wholesalers! How to prevent the end buyer from cutting me out of the deal?
Hello all,
I am wondering how, upon signing a contract with the homeowner and then attempting to assign it to an investor, one can prevent the homeowner and investor from making a deal behind my back? I am new to wholesaling and the second time I took an investor to look at a property I had secured a contract on, he and the homeowner started speaking to each other during the inspection. I suspect at some point the homeowner and investor revealed to each other the price of their respective contracts. Both the investor and homeowner dropped off of the radar afterward, and I later found out the homeowner sold to that very same investor. I am aware I have legal rights since I had a contract with the seller, however (since waging a lawsuit is prohibitively expensive for me) I am asking for advice on how to prevent this situation from happening in the first place. I have accepted that this deal is water under the bridge, but I am looking to learn as much as I can from it. Thank you all in advance for your responses.
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That's one way for sure to never get another deal from me.
I've found that the majority of investors understand the nature of the game, and play by the rules. When it comes right down to it, we're quibbling over a few thousand dollars; the seller wants more, the investor wants to pay less, your fee is the only middle ground to split. Average deal.....5k, so the investor burns me for $2500? A little more, little less? Really? Is it worth it to cut yourself off from a good deal source?