All Forum Posts by: Tom Jones

I do this all the time. I work out an agreement with the wholesaler based on the deal. Sometimes we split the spread, other times I get the property under contract and just add my fee to their price. A majority of the time we just split the spread 50/50, technically I am doing half the work I want half the profit. May not work for everyone but it does for me.

I agree..you do half the work, you are entitled to half the profit!

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Thanks Mike for the information.

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Originally posted by Dory Peters:

Yes, I have, and I used the same paperwork that I'd use for a normal wholesale deal: an assignment agreement and NCND (which is optional).

Another option is to double close that deal, and you'd use another P&S instead of the assignment agreement.

If you are co wholesaling a deal, you wouldn't be using an assignment agreement with the other wholesaler. That is only used with your end buyer.

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Originally posted by Will Barnard:

I agree with Tom. An NCNDA does not really protect you, it just delivers a false sense of security and helps keep the honest people honest.

You could have a fully executed NCNDA and the other party could still cirumvent you. You would then need to file a suit against them which would cost you lots of money in attorneys fees and if the other party has more cash than you do, you could be in for a long and expensive battle.
This is why Tom suggested that they are not worth the paper they are written on.

Thanks Will for the added information. Forgot that part about the Attorneys. I guess that is because I don't like Attorney's because like doctors, most are just in it for the money. They don't really care about the clients/patients.

So far, the only attorney I have ever met was the one who dealt with my aunt's estate. He was truly nice and professional. Unlike most.

I also have an NCND, and the only time I have ever used it, is when I know I am dealing with someone who "might" go around me, and they feel the NCND is prevent that, and they don't know any better.

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Originally posted by Sean Danley:

John,

You can also use a non-circumvent agreement with your end-buyers, which is basically a form, in which they agree not to go around you.

No offense to Mr. Danley here, but most NCND's are not even worth the paper they are printed on. They are just used as a security blanket to make people feel safe.

The only way to ensure that your buyer does NOT circumvent you, is to have a good rapport for them.

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Originally posted by Daniel Bradshaw:

Hey Everybody,

I am wanting to get into wholesaling then eventually short sales and rehabs. If I put a house under contract and intend to assign my contract rights at closing in a "double closing" or "simultaneous closing" can I put listings in the newspaper or signs up show the house for sale?

If not, how would I go about attracting investors interest to eventually "sell" the property to?

Thanks,
Daniel

One the property is under contract, you can advertise all you want. At that point you have an equitable interest.

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Originally posted by Aaron Mazzrillo:

He apparently gets agency contracts with his sellers. He contracts with them the amount of commission to be paid. If he is bringing you properties, I would treat him not as the seller, but as a bird dog. And if he brings you more than one deal, I would treat him to dinner and a few other perks too!

Aaron:

So, I should sign his agreements (basically an agreement stating no one will go around him in the deal), and just treat him as a bird dog. Take the properties, pick one for right now, run my comps, make the offer, they accept, put it under contract, and then offer it to my end buyer. Since he is getting paid from the seller, than just offer him a referral (bird dog fee).

Makes sense, and that is what I was thinking, but like mentioned, wanted to be sure!

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I apologize ahead of time for asking this, as I am sure I know the answer, but before getting involved, want to be sure I understand it fully.

I have a realtor who works in a city over from me. He emailed me off of one of my craigslist ads and informed me that he specializes in locating distressed properties for investors, contractors, and builders in my area.

I emailed the realtor back, and informed me that he does know of some deals in the area. Now, since he is working with the seller, and he informed me that his contracts with the seller dictate that they pay all commissions. So, should I just treat him as if he was the seller, by letting him send me properties, I do the comps, offer, etc and then if accepted, just take it to my buyer as well as market it to other buyers?

Thanks.

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Originally posted by Tiara Murray:

Also, I understand that with a typical transaction a real estate agent opens escrow at the title company, but with a wholesale, who is responsible for this task?

You or the buyer can open up the escrow. It is free to open up escrow, and they take their fees out at closing, just like everything else. Just need to ensure they understand assignments of contracts and/or double closings.

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Originally posted by Shawn Davenport:

Wow, seems like a great first deal. I can only hope to be as fortunate on my first deal. I am not trying to be negative, just a word of caution. My employer (a bank) restricts me and other employees from investing in real estate (we have to disclose all outside business activity). We are allowed to purchase property long term for rental income portfolio's "ONLY", but cannot invest in REO's of the bank (one of the largest REO pools) Anyway, I bring this up, to caution you to be careful. Protect yourself, just in case your employer has a similar restriction. Great deal, I hope it work out for you to the fullest. really Inspirational for other newbies.

That is the first time I ever heard of a bank restricking a emlpoyee in investing in real estate. Probably don't want you to do a few deals, make more than their low pay and quit.

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All Forum Posts by: Tom Jones

Tom Jones has started 4 posts and replied 34 times.

Post: Co-Wholesaling

Post: Co-Wholesaling

Post: Co-Wholesaling

Post: wholesale contract to investor question**

Post: wholesale contract to investor question**

Post: Can I advertise a house for sale that I just put under a purchase contract?

Post: Question about working with a realtor.

Post: Question about working with a realtor.

Post: Assignment... I dont get it

Post: First Time Wholesaling