What To Do When There Are Multiple Wholesalers in One Deal

A lot more common situation that comes about as wholesalers are now wholesaling other wholesalers properties follow me there, wholesalers, who are now wholesaling other wholesalers properties. In fact, the most assignments that I’ve had in one of my actual personal deals is seven separate assignments.

 𝐉𝐨𝐢𝐧 𝐎𝐮𝐫 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐅𝐚𝐜𝐞𝐛𝐨𝐨𝐤 𝐆𝐫𝐨𝐮𝐩 
https://www.facebook.com/groups/thescienceofflippingacademy

 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 ➜ https://www.youtube.com/justincolby
 𝐁𝐨𝐨𝐤 𝐚 𝐂𝐚𝐥𝐥 ➜ https://www.thescienceofflipping.com/learn-more

 What does that mean? That means I personally marketed to a seller, I negotiated I contracted the deal, I opened up escrow, I sent it to my buyers list, someone on my buyers list said I will take it, they then sent it out to their buyers, someone on their buyers list said they would take it they sent it to their buyer someone on their buyers list seven times, seven times that happened in one transaction. And guess what? It closed and everyone got paid right on the HUD. Now, this is a crazy story. And not every deal is like that. But I will tell you roughly 10 times a month or more. I’m actually helping co wholesale someone else’s property. And that’s because my buyers list is really, really good. I cultivate my buyers, I know my buyers, I know what they’re trying to buy, where they’re trying to buy the price points, I create the relationship, and I’m able to sell properties that many other people aren’t able to sell. And for that reasons people come to me asking me if I’m willing to sell their property. I just got one today in Baltimore, Maryland. And guess what I actually believe we’re going to be able to get it sold pretty darn easily. I’ll keep you posted about that. That all being said, it is a much more common to have two or maybe three assignments in your transactions. So what can you do to stop this? Well, first of all, I’m not sure it’s needed that you need to stop this I at the end of the day, as long as a transaction closes, it’s kind of irrelevant, right? If you can get the number that you wanted a say you were trying to sell it for 200,000. And someone comes in and contracts it and submits earnest money at 200,000? Do you really care that they resell it? I’m not so sure I’m not so sure you should care. The reality is if someone else can make some money on it, and has a buyer that you didn’t have that’s willing to pay more than you’re willing to pay. God bless him high five, let’s do another deal together. But there are certain things you can do to try and eliminate that if you so feel you need to and that is to force your buyer to submit their earnest money before anything else happens. Now, again, this is very difficult to stop it completely is they may take their buyers earnest money and wire it in etc, etc. Is that has happened to me several times before. But again, I’m not certain that it needs to stop because ultimately as long as the transaction closes, I’m okay with that.

Now, how does the transaction actually happened? So if I’m marketing directly to the seller, then I have a purchase agreement with the seller. It’s a true purchase agreement, earnest money, the whole nine yards, inspection contingency purchase price, and what I do is I’m assigning my contract over to my buyer. I make a couple calls. I shoot a couple text messages. I send some emails and I say Hey, are you interested? In buying this assignment, and they say yes. So what they will do is essentially, they will go in in sign my assignment, which gives me an assignment fee in the transaction, and then they are taking over all of my terms of my purchase agreement. So there’s a purchase agreement between me and the seller. And there’s an assignment between me and the buyer. Well, what happens if there’s another buyer involved? Well, the only other thing that needs to happen is to make sure that there is another assignment from your buyer, to their buyer. So you assigned it to your buyer, they now are going to assign it to their buyer. And that is it. That is the end of the chain of paperwork, you don’t need multiple purchase agreements, you don’t need anything beyond just the assignments to each buyer. And once you do that, then everyone gets paid on the assignment fee in the HUD are in escrow on the HUD. So don’t overthink this. This is actually a question that came up a couple times here in my coaching program. Even this morning, two students had questions about this, as they themselves, were going to be selling someone else’s deal, right? They had a buyer that wanted, you know, another wholesalers deal, and they asked me how to structure it. And I said, it’s very simple. All you need to do is get your buyer to sign your assignment at your price, submit earnest money, and then you sign the original wholesalers assignment. That’s it. So I want you to slow this episode down a little bit. Because unless you’re watching me on YouTube, you might get a little confused as I’m talking. But essentially, it’s just adding as many assignments from buyer to buyer as you need. There’s only one purchase agreement, everything else becomes assignments. That’s really all and again, do you need to stop this or? No, I would tell you don’t worry about trying to stop it. Because again, if someone else has a buyer that you don’t have, God bless him, let them make some money, and go do another deal with them. Right? That’s my perspective. Now, here’s what I like to be, I like to try to be the last person I like to try to be the guy that has the buyer, because the original wholesaler then will start to come to me and say, Hey, you know, can you send out my deal because you were the one that actually brought the real buyer. So for all you wholesalers out there, what I would encourage you to do is really build your buyers list, really find buyers that can execute, because if you do, then you have more opportunity to be able to sell other people’s properties. And that’s really where you can make some money for free. And then turn the whole model in the model that I run. The model is simple, wholesale your way to wealth, wholesale deals, that from other people, and then take that money which is free, you’re not spending any money on marketing, take that money, and then reinvest it into marketing, then go get your own deals, start wholesaling them, there will be no cost to it because you wholesaled some other people’s deals that effectively paid for your marketing. And now you’re able to take that marketing, get your own deals, which now is also free money. And then you can take that in buy rentals. And that’s exactly the business model. I run right now as a moment in time. So hopefully this episode really helps you guys understand that whole thing is not the end of the world. It is very common and very, very simple. Everything runs through escrow. So again, if you have not yet go to my YouTube channel youtube.com forward slash Justin Colby, subscribe, because you can check out all of these episodes right there on YouTube. Make sure you subscribe, so you can watch me rather than Listen to me. But if you love iTunes and Spotify, stay tuned, keep listening as I’m dropping multiple episodes each and every week. I’ll talk to you guys on the next episode. Peace