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Updated about 9 years ago,
Co-Wholesaling?
Hello,
Wondering if BP could help me figure out how to present this opportunity to another investor/partner and if there would be any potential problems that I haven't thought about yet...
I met a guy that would like to get into wholesaling single family homes. He has personally flipped around 50 houses in the last 5-10 years but hasn't done very much as of late due to the REO inventory drying up. He was doing majority of the deals back in 2008-11 when deals were easier to find off the MLS. He heard about wholesaling recently and was intrigued by it.
He knows that I am currently marketing for off-market deals in my area and would like to partner (to fix n flip) if I happen to find another deal. But instead, I am considering how can we combine our resources to do more...
What if he funds the cost of postcards and postage. Say $1,500/month.
That would equal a little over 3,000 postcards per month going out.
My role is to create the custom lists (driving for dollars), create the custom marketing piece, address all of the postcards and send out the mail on time every month, consistently. I would also take all of the calls, do the follow up and meet with sellers to get contracts signed.
Once we have signed contracts, then either of us can use our networks to find the cash buyer for the property.
We then split the wholesale fee.
He is using his money to make money. I am using my time and sweat equity to make money.
Could this work successfully? Why or why not?
I am getting a little too excited to do this because currently I am restrained by my monthly budget as to how much marketing I can personally send out. If I had $1,500+/month to send out marketing, well then, skys the limit!