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Updated almost 3 years ago on . Most recent reply
How do you wholesale other wholesalers deals
Hello everyone i have question that i need answered from either an experienced wholesaler or some one who has already figured out this process.
so my question is, how do you wholesale other wholesalers deals and make sure your protected to the point that you get paid if you bring the buyer to the table?
the reason why i ask this question is because i find it alot easier to go into and agreement with another wholesaler who already has the deals then to do all this marketing and etc to attrack the few homeowners that have equity or actually have a good deal for you (doing this just allows me to move more quickly and build up a list of inventory and etc)
because what i find is wholesalers that do have great/awesome deals are still having trouble flipping them, and its not just because of the tuff market we're in either, its because most investors know real estate tactics but don't know marketing, like i've seen wholesalers who couldn't sell a property for say $30K but another wholesaler get a hold of it a re-market it and sell it for $55K without doing anything to the property at all
so once again my question is how do i wholesale other wholesalers deals (because i have a list of the active buyers), like what is the deal structure of how to do this properly to make sure i get paid, because like two days ago me and my partner got beat for like $8K, we brought the buyer to the table and once we did the first wholesaler went around our back and did the deal with our buyer and took our profits
so is the norm just doing a assignment of contract from one wholesaler to the other ((because it one time that me and my partner got beat we didn't do it this way)), if this is how it's normaly done, right i would have to submit like two separate assignment agreements with the purchase and sale to the closing agent just for my buyer to be able to close on it
Most Popular Reply
While for more or less I agree with Carlos and Stinson,(and Will for that matter), I can think of a few situations where this partnering is beneficial.
1) There is one local wholesaler I know that has made finding buyers his niche. Instead of marketing for sellers, he markets for buyer's and will send your deals to them for a small fee. If you're a one man show trying to wear all the hats, this will help you get more deals done while getting established.
2)A couple months back, I had a buyer pull out 2 days before closing. I did not have the forethought to have a back up buyer in place. I called one of my mentors who sent the property out to his buyer's list and had another buyer within 2 hours. I paid him a grand at closing.
3) About a month ago an out of state investor I've done business with before contacted me and said he had 300k burning a hole in his pocket. He wants more rentals. I don't keep that much inventory, and he wants them NOW. Wants to buy a house a week. I wish I had the contacts in place to pick up REO's like Will does, but I don't yet. So I'm taking a close look at other wholesalers deals to find the matches I need (while also stepping up marketing AND trying to set up my ducks to wholesale REO).
I think there's a big difference between a vulture and a partner. This IS a people business, and I say the bigger your network the better.