All Forum Posts by: Account Closed

Chris, you're right. Even so, I would never use the word "partner" because that is a legal term describing a formal business relationship, it is not established  by casual dealings. My uncle is not a "partner" we might be associates but we have no formal business ties. Your spouse is a partner, you're hitched through a legally recognized bonding entity.

Another point, you contract at a price BEFORE doing all of your due diligence, not after. If you are paying for a home inspection before you agree on a price under contract, you're operating azz backwards. If I find in further due diligence that the property won't meet my goals, it might meet another investor's goals, I won't know that until everything is accomplished. That too can be explained to a seller, I'm not deceiving them with partnership BS.

A really big problem in the RE industry is that you can have operators dealing that don't have a clue about real estate. The gurus don't teach real estate, they teach some method or ploy to move real estate around as if a house was a car. Real estate is not just a widget to market, some object of opportunity.

Real estate is a different class of asset, because of its very nature it is unique, serves a public good and purpose. It is a necessity for civilization and a community, anchored in rights of ownership and rights of the public. You'll learn this in the first two chapters of most real estate text books, something wholesalers starting out probably never read or understand. You're under the impression that you're just selling or dealing with some marketable widget that you can tack on some arbitrary value to. That's guru crap, that is the wrong thinking, not only as a professional in real estate but also as a responsible citizen of your community dealing with the public.

And that is why we have more rules, regulations and laws in real estate than we have for car dealers selling new or used cars.   Acceptable ethical and legal conduct is completely different in selling real estate than a vehicle or a pair of shoes. We humans are predatory by nature, laws and social demands curb that side of us for our own good as well as others. Predatory dealing includes simply getting another to act in a manner that is unfair. Simply because you can talk someone into doing something that benefits you greatly doesn't mean it's fair dealing. That's not to say you should not profit from your work, but your work has a value that can be ascertained legally and ethically in any business transaction.

Never met a successful person that didn't have a good reputation. :)  

Partners? Really, you have "Partners" as in partnership? Or, is that part of the guru teaching to weasel out if you fail to get a "partner" to buy or sign off on the deal. How do you explain that clause in your contract?

Pretty simple to get the deal across:

Mr. Seller, I acquire real estate for myself......I also work with other investors. If we reach an agreement for you to sell, and later I find that this property doesn't fit my investing needs, do you care who buys it at our agreed price???

No, they will not care!

If they say something like..."Oh, you just want to flip my contract?" You can repeat what you said, no, if it doesn't meet my needs do you care if I let another investor buy the property at our agreed price? Actually, Mr. Seller, agreeing means you increase the odds of selling at your agreed price regardless of what we may find later on, per the agreement.

Again, they don't care!

Get rid of all the partnership BS and weasel clauses and stick to the standard contract, if title is bad, you're off the hook, if you can't get financing, you're off the hook, if the payoff comes in too high, you're off the hook, if the seller can't give good title, you're off the hook, if you make it contingent on passing a home inspection and there are significant issues you can't work out....again, you're off the hook! 

Not picking on you Tyler, it's just par for guruized wholesalers, who don't really know real estate or contracting and legitimate ways to terminate a contract. Learn the basics!  :)