To my Fix and Flippers: Splitting the profits with the homeowner (from a wholesaler)

[David Sanchez]

Hi everyone! I have been cold-calling for about 2 weeks since last December, and I've learned a good chuck about wholesaling in about a month or so, with around 90 pages worth of notes on the entire process. So far, I have visited a seller who has shingles and wants to sell but is doing his due diligence with other "big boy buyers". Either way, it's been a very eye-opening experience with real estate investing in general. Especially with how creative it can get. One of the most interesting strategies I have learned about is where a fix and flipper splits the profits with the homeowner(s) after selling the property (a.k.a. the magic closing). To me, it makes some sense to do this, because the flipper is making a very convincing offer and may be able to close the deal on the spot at a discounted price (and can do this strategy repeatedly). For the homeowner, they may be able to receive more money, than had they gone with a typical cash buyer and can feel included in the "investing process".So as a wholesaler, I was wondering if Fix and Flippers would be open to doing this themselves or along with a wholesaler who needs to find a fix and Flipper to split the profits to make the deal work. Secondly, I've only heard of 50/50 splits but I bet you could even do this at a 60/40 split of the profits (flipper/seller) if not more depending on other offers, seller motivation, and mine's or your negotiation. I would love to get your thoughts on this strategy and even feedback to revise it and make it work. Thank you in advance!