Marcus - do you have the deal under contract?

Additional Info —Key Details:Location: Outside Santa Fe, NMProperty Size: 20 acres (valued at $80,000)Project: Two new STR unitsExisting Experience: Family has two fully-occupied LTRs nearby, generating $2,000/monthConstruction Approach: Self-contracted with licensed trades for electrical/plumbingCost Assumption: $80,000 per unit, plus ~20% for inflation (based on 5–8-year-old build costs)Financing: Using land equity as down payment on construction loan (expecting closing costs to be major expense)Request: Looking for feedback, potential pitfalls, and general guidance

Also, newer wholesalers only see about half of their contracts get dispo'd and closed (sometimes less) because of the reason just mentioned or a lack of Buyers to dispo to. 

Contingency lawyers are not interested because of Arbitration clauses in the contract.

However, he asked me to sign a one-year Exclusive Right to Represent agreement, as presented to him by his brokerage.His interpretation is that it applies only when he materially assists me, but I think the boilerplate brokerage language he was given reads much more broadly:"If during the term of this Agreement Buyer enters into a contract for the purchase of Property through the services or efforts of the Broker or Buyer’s Brokerage Firm, or by or through any other persons during the term of this Agreement" (emphasis mine).My concern is that, under my interpretation, if a fellow real estate investor wants to unload a property or if I get pointed to an opportunity by a former agent, colleague, or friend, this agreement could create an obstacle to moving forward with the deal.In the end, I didn’t sign.

We are currently under contract on one of the lots.

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The house is under contract and i hope we close soon.

It's part of their contract to get paid and not getting paid is a violation of the contract.

Given the circumstances, I’m unsure whether to proceed or back out of the contract.