Dealing with wholesalers as a wholesaler

[Garrett Davis]

So I am searching craigslist and as expected the adds are 90% wholesalers looking for cash buyers. With my scenario I am just starting out and I am going down the rout of flipping contracts to my list of cash buyers that I have since I have no money to buy the properties. So my question is are there deals in dealing with wholesalers? Maybe a finders fee or anything? I just want to make sure that I am investing my time wisely and so far 90% of my calls are going straight to wholesalers who are looking for cash buyers. I hope this make sense. 

[Eric H.]

@Garrett Davis There is absolutely money to be made off of other wholesalers! I closed my 1st wholesale deal with the help of another wholesaler. We have done another deal together as well and plan to do many more. Before even contacting the wholesaler about his or her deal MAKE SURE IT'S A DEAL. Run your numbers and run them again. The easiest way to diminish your reputation with your cash buyers is by bringing them crappy deals. Your fee structure with your wholesaler is totally negotiable (60/40, 70/30, 50/50). Write up a simple one page jv contract and submit it to title company with original sales/purchase contract and assignment contract. Be sure to get a copy of the HUD-1 (or closing disclosure) before closing to make sure you get paid.

Hope this helps!

Sincerely,

E. Harris