How to wholesale someone else's wholesale deal

[Jeff Fairchild]

Ok, I've heard of people doing this before, but I'd like to know the steps I need to take. I have a wholesaler w/ a property under contract for $95k. He is asking $110k for it. From my analysis I can sell it to an investor for $120k or so.

My question is, what are the detailed steps that I will need to take and what forms will I need to fill out to make this happen?

[Richard Lorenzen]

I do these deals a lot. I've used flex options, but I didn't like them because if the end buyer is using financing to buy the property the amount of cash he has may be limited which limits how much you can charge him to assign the flex to him.

Drawing up a PSA between you and the wholesaler doen't work if the wholesaler is doing an assignment and not a double close so I didn't find that method helpful. There could be another way around it, I don't know.

The method that works best for me is signing a JV (joint venture) agreement between me and the wholesaler. The JV contract specifies how much my fee is. When I get an end buyer, I have the wholesaler send me the assignment contract which I forward to my end buyer and then get my buyer in touch with the wholesaler. When the deal closes the wholesaler sends me a check for the specified fee.

There are probably other ways to do this, but this is what has worked for me.