So, you have found the property, negotiated a great price, put it under contract, located a buyer from your buyers list and now you are scared that your buyer may re-negotiate the terms behind your back and not compensate you for your work. Sounds familiar! Wholesalers are very apprehensive to provide addresses to their buyers due to the fact there are so many 'scam artists' who claim to be investors in today's market. There are people who seek out 'newbie' wholesalers because of their inability to secure their position in the property correctly. This article will show you the trick to be in full control of your deal.

Secure your Buyer

When I initially began wholesaling properties, I thought that I had the right to be compensated because I had sizzling hot leads at $.65-$.70 on the dollar in emerging neighborhoods. I took an investor's word as his bond and walked away thinking that the assignment fee will find its way to me for my hard work. I found out the hard way that unless it is in writing, the transaction 'never happened'.

I have sued investors in Court over assignment fees on several occasions. I have even had deals where the investor will close under a relative's name in order to get out of compensating me for my involvement in the deal. I have even had investors steal deals from me by offering my assignment fee the homeowner as a cash reward and present a lower offer to the seller. If a seller is desperate for money, they are not going to refuse cash in hand immediately.

You do not need an attorney to assist you with drafting an assignment of contract form. Just a brief statement which includes consideration and the terms is more than enough. Any property that you have under contract with the homeowner must be in writing with specific terms and conditions. It is the same policy when you are seeking to assign the deal to an investor. PUT IT IN WRITING. Arrive prepared to every meeting with your assignment of contract in your hand. Set your assignment fee, terms and conditions for assigning the deal with each transaction you are involved with. Also, become familiar with Non Compete Non Disclosure (NCND) agreements. This document will prevent your investor from competing with you for your property. Every penny counts to an investor, so by cheating you out of an assignment fee, they have saved money.

Take your assignment of contract a step further. File your assignment of contract & NCND with your local County Clerks Office IMMEDIATELY. This will ensure the transaction will not close without compensating you the agreed consideration (assignment fee). The benefit of filing your contract with the County Clerk's Office is that it will show up in the title examination of the property. This is crucial if you want to stay in this business because many investors are deceitful. Be sure to disclose to all parties involved that you will be filing your document with the County Clerk. Be sure to check with your County Clerk for filing fees and limitations. I am not implying that all investors will steal your deals, but let us be honest, this is a business and you must operate it as a business.

In addition to filing your Assignment of Contract with the County Clerk, request that your buyer references your services on the HUD 1 form with his/her closing attorney or title company. This will also ensure that you will be compensated. The closing agent may reference you as a consultant. The funds will be deducted from the funds held in escrow at closing and remitted to you immediately. Speak with your buyer and request his/her closing agents contact info to discuss the process in detail.

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