Flipping - Posted by Leo

Real Estate Investing
1

Posted by Becky IL on August 07, 2001 at 12:19:56:

I have several friends who only do wholesaling of houses and they’ve been quite successful. I’m sure this may happen on occasion, but if you line up private money to buy the house in case you don’t find a buyer, then this would never happen.

2

Flipping - Posted by Leo

Posted by Leo on August 07, 2001 at 10:47:33:

I am currently setting up my part-time business to do flips. I will start off acting as a dealer i.e getting houses under contract, then selling them to retailors. A friend of mine who is also getting into the rehab business told me that once I tell retailors about the house, they will just wait until my contract runs out and buy the house themselves. Can this be avoided if I have several potential buyers, or is this something that is going to happen often?

Thanks,
Leo

3

Re: Flipping - Posted by JimP

Posted by JimP on August 07, 2001 at 15:29:09:

Leo,

I am by no means an expert but I do have some good relationships with investors. As a retailer it is in their best interest not to steal the deal from you. After all you are bringing them the deals. If they steal one from you then they just lost future deals from you. My investors are too busy fixing up houses than to negotiate with sellers.

Good Luck,

JimP

4

Re: Flipping - Posted by DM

Posted by DM on August 07, 2001 at 15:10:52:

Has any one used “Non-Compete Non-disclosure”, contracts to address this potential problem? i.e. u would sign NCND agreement with your re-habber/buyer for each deal or a blanket contract covering all deals u bring them.