Co Wholesaling QUESTION???

[Andre Vaughn]

I am considering "Co Wholesaling" my first deal under contract.  My question for you all is what are some of the things that I should look out for?  I have done my due diligence on the possible joint venture partner as well so I am comfortable with him personally.  I know that many of you have had numerous experiences so what better way than to get advice from you all.  Thanks!  

[Jon Frame]

Hey Andre,

I'm going to assume that you are working with a wholesaler that has a property under contract and you will find the buyer. This is an awesome way to start with zero risk on your part.

First make sure you have a reputable wholesaler that you are dealing with...remember if you have the buyer, it' your reputation at hand.

There's 2 ways to do this and I have done both.....You and the wholesaler can agree on a cut for you bringing the buyer in or, as long as there's enough meat on the bone, you can bump up the price of the wholesale deal and you keep the difference. 

Also, like Arktavious is saying.....stay in the deal and see it through.... but you don't want to complicate things because your now in it as well......as long as you have the agreement with the other wholesaler, they can cut you your share after the deal is settled. Personally, I wouldn't get all these checks cut at the closing table in front of your buyer, that's between you and the wholesaler.

Even though the other wholesaler isn't your business partner, as far as the buyer is concerned, the other wholesaler is your "partner" in the deal.