Can I Stop Other Wholesalers from Stealing my Buyers in JV Deals?

stealingThe short answer to the question in our title is no.

You can’t always stop double-crossing investors from stealing your buyers (a.k.a. screwing you). That’s the bad news. But the good news is you can take some measures to help prevent it from happening on your joint-venture deals.

I’ve worked with lots of investors in my community over the years, and although I have been swindled once or twice (and yes, it sucks), I’ve learned how to weed out those who might screw me over…

“Fool me once, shame on you. Fool me twice, shame on me.”

Patrick RoundIt all comes down to relationships.

My advice to you is to network in your community to get to know other investors who have similar values and work ethics – those who understand the long-term value of trust and the true word. Focus on getting your foot in some doors, so to speak, but understand every step of the way that when money is the motivator, people are capable of almost anything.

So tread cautiously, but make every effort to surround yourself with ethical, trustworthy professionals who will always have the best of intentions. There are some deceptive investors out there, no doubt about it. But I think you’ll find that the majority of the investor pool is comprised of some darn good people.

Regardless of whether you’re a rookie wholesaler or a seasoned pro, know that the more knowledge you have about wholesaling, the easier it will be to find the wholesalers that you’ll want to establish lasting relationships with. You always want to be continually learning and growing. And, for some awesome advice on how to wholesale anywhere, anytime, check out our friend, Justin Wilmot’s crazy-good 10 Hour Wholesale Training video.

Peace out to devious wholesalers

Like I said, there are some bad-news investors out there. So, how will you handle your first “robbery?”

If another wholesaler steals a deal from you (and chances are it will happen sometime in your career), that should be the last time they ever have the privilege of working with you… END OF STORY.

robIf they go behind your back, make it clear that you will never, ever… ever work with them again. Period. No exceptions. They’ve lost your trust and your working relationship. Their loss, not yours. (And, you’ll let other wholesalers know to steer clear of them.)

Don’t waste any more of your precious time on them. Focus your time and effort on pursuing the unlimited number of wholesale deals out there and working with the great number of people out there who won’t give you any trouble.

“You don’t own me. I’m not just one of your many toys.”

With that said, you must realize that you don’t “own” that JV buyer for future deals.

Once you get past playing matchmaker on this first deal, technically, that wholesaler and buyer are now first-person contacts with each other, and you can’t really expect them to ask for your blessing before they communicate. So just be aware of that and keep it in mind as you build relationships and work your deals.

A few more rules of the road

These will help keep you moving in the right direction:

  1. Whenever you possibly can – avoid introducing your cash buyer to your motivated seller. It’s a recipe for disaster. It’s common sense, really, but it’s worth the reminder.
  2. If you’re in the midst of a joint venture with another wholesaler where you find the seller and your wholesaler finds the buyer, always (and I mean always) have a signed JV agreement that specifically states who is responsible for what and how you will split the money.
  3. When working with big money deals, make sure your “partnering” wholesalers and their cash buyers sign a non-disclosure agreement (NDA) prior to granting them access to property details.

What’s Up Insiders?

Has another wholesaler swiped your buyer? If you’ve got a story to share, do tell below!

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