Question about wholesaleling

[Timothy Martin]

If I'm only trying to wholesale properties, and another investor is trying to wholoesale a property to me, how does that work?  In other words, can I wholesale a property that another investor wants to wholesale to me?

[Gabriel Amedee]

Timothy Martin

You have a couple options that vary greatly according to your relationship with the buyer and the wholesaler. Here are the ones I can speak of from experience but I'm sure there are a couple more I have no idea how to execute (like double assigning).

Joint Venture Agreement
There are many of templates you can find online to have an idea of this. You can write one up between you and another wholesaler making the agreement pertaining to said property. Depending on the assignment amount I would be weary about how serious the other wholesaler takes this agreement. If the total owed to you is under $5,000 then I think a shady person could be confident that you won't take them to court for the cost of attorney fees. Just something to keep in mind as I've heard stories of such cases.

Referral Agreement (if you're both realtors)
If you're a realtor than you already know how this works. If you're not one then this isn't applicable to you.

Finders Fee
Don't know the legality of this practice but I know it is pretty common. Instead of going to the wholesaler for compensation you go to your buyer and ask them for a fee for finding you the property. If you bring them a deal and they don't pay you then it cost you nothing to realize that the buyer is not someone you want to do business with.

Deal Giveaway
This is something many people won't understand but I do it often and will continue to do so because I see the results. This is probably the only reason I still occasionally look at other wholesalers inventory. If I see a property that relates to the criteria of an investor I'd like to be closer to, I'll just connect the wholesaler and the buyer without any markup. If I can get the wholesaler to throw me a bone, great. But if my mark up will make the deal less appealing, it will be nonexistent. I do this all the time and could write a blog about opportunities and knowledge I've gained from just being mindful of the long run and not set on a quick couple thousands today. Might not make sense to some but it does to me.

Hope I didn't give you more than you asked, I tend to do that often. Anymore questions feel free to reach out. Happy investing !