Ever Witnessed a Wholesaler being ABUSED by Cash Buyers?

[Account Closed]

This week in Atlanta, my partner and I closed a $45,000 assignment on a wholesale deal.

This deal was brought to us by a newer wholesaler who was hoping to make a few $G's on the deal.  In fact, he would have been thrilled to make $5,000.  Most new wholesalers would. 

He brought us the deal BEFORE contract, and entrusted us (we have a TON of experience closing deals) to do the negotiation and contract the deal. We probably got it for $20K less than he was going to offer anyway-we signed for $37,500. The ARV would be $125K-$135K with about $10K-$20K in renovation.

We priced the deal to move at $67,500 and pumped it out to my Buyer's List ( about 20,000 buyers) and we got a frenzy of activity.  

With multiple, above asking offers, we closed the deal at $85K and after some closing costs, we split a little more than $45K three ways.  

It was a great deal for all 3 of us.  

These are my absolute favorite deals-where essentially a Bird Dog brings a lead and I treat them to a partnership split in the deal.  

I see so many Cash Buyers give wholesalers a few grand for bringing a deal and then go off and make $50K-$60K  or even $100K after doing the flip.  I'm not arguing that the Cash Buyer doesn't deserve the lion's share of the deal, but I love being in a position to get much healthier Wholesale Fees for my  Wholesale partners.

You can bet for the guy that just whacked up that $45K assignment with us this afternoon-it's going to be a good Christmas this year!!

[Tony SanFilippo]

Sounds more like the wholesaler Abused the cash buyer.  They had to be a newbie.  Mike B I agree no profit in that deal.