Wholesale Offer
Have a property and have a wholesale buyer lined up. My question is regarding the wholesale offer...
is it possible for me to add some conditions onto the offer - is that ever done?
For instance, there is a pretty good possibility that the propoerty could be sold short by the investor. Could I structure the deal so that IF the property is sold short I get a % of that difference as well?
Along those same lines, could I structure the deal so that if the actual sale price of the property comes in above a certain amount I get a % of that as well?
Any thoughts are appreciated...
You can do anything that is legal. The problem will be finding a buyer who will want to agree such a deal.
You can do two things if you find someone.
1. Structure the deal as a joint venture. This way you still have a position. Many investors will not take on partners so it will have to be a great deal to motivate them.
2. You can do a deal where you have an option to buy it back or otherwise have an interest.
Again, in both cases you need to find a buyer who does not mind having a partner.
Have you considered doing the short yourself? What is the problem? Can you solve the problem another way (other than a sale)?
John
PS. I joint venture but the deal has to be really good if the other person is not experienced.
Most non experienced wholesalers and some experienced in my area charge a flat fee. This will allow for repeat business, referrals, building relationships, experience, and sometimes a partnership offer. When I speak about this business to people I always refer to Mickey and Goofy. Mickey wanted to get to the finish first and speeded along and got sidetracked. Goofy went slow and steady and won the race.
Analize the relationships and the business clientale you want.
Lori
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