WHOLESALERS: How can I stop the end buyer from cutting me out?

WHOLESALERS: How can I stop the end buyer from cutting me out?

Wholesaler · Member since 2020 · 17 posts · 0 votes

I have a seller who has 10 discounted properties. I have 1 of his properties under contract(so of course, his name will appear on the purchase agreement that I assign to the end buyer). Once the end buyer sees the seller's name on the purchase agreeement, they could easily google him and contact him directly, thus cutting me out of future deals. Is there any way to stop the end buyer from knowing the seller's name?

0Reply
24 views

Most Popular Reply

Member since 2020 · 41 posts · 17 votes
5y

@Account Closed You can do a double closing instead of an assignment. You would have a different contract with end buyer. 

See this reply in the discussion

5 Replies

Jump to latestLatest
  • Member since 2020 · 41 posts · 17 votes
    5y

    @Account Closed You can do a double closing instead of an assignment. You would have a different contract with end buyer. 

  • Wholesaler · Member since 2020 · 17 posts · 0 votes
    5y

    @Jonathan Martin Is there any other option besides a double closing?

  • Wholesaler · Charlotte, NC · Member since 2015 · 127 posts · 63 votes
    5y

    @Account Closed I assume you’re wondering about the other nine properties. Be sure to have your assignment agreement is signed by your current end-buyer.

    If you’re working virtually, after you sign the purchase agreement with the sellers hold on to that file.

    When you do a virtual signing with the current cash buyer, you should send both files together to the closing office. (If the cash buyer wants information about your purchase agreement, you can answer whatever you can, but the purchase agreement should be available at the closing office-the closing office will handle everything else.)

    You can ask your closing office if it’s necessary for the cash buyer to see your agreement with the sellers. I would caution you not to be overly cautious. Your cash buyer may buy all of them if you let them know that you have another property in the pipeline.

    You don’t have to say that you have nine other properties. I wouldn’t ask my cash buyers to sign a non-circumvention agreement.

  • Member since 2020 · 41 posts · 17 votes
    5y

    @Account Closed I don't know of an alternate solution. I guess you can get them all under contract. 

  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    5y

    There is no way to prevent the end buyer from figuring out the seller's name.  Anyone who wants the name could probably figure it out in about a minute or two with nothing more than the address.  (I know I could.)  

    And no, you cannot keep the purchase contract from the end buyer either if you are trying to assign it to them. They get to see it, hold it, read it, etc.  You are assigning it to them, so if they agree to it, they are agreeing to be bound by all the terms/conditions in it.  Wholesalers - please don't expect them to do that without them having READ it in its ENTIRETY first. 

    You need to deal with people who have integrity and establish trust with them.  In the end, trust and integrity are the ONLY things keeping people from making an end run around you and going directly to the sellers.  

Join the conversationCreate a free account to reply, vote on answers and follow this thread.