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Updated about 4 years ago on . Most recent reply

User Stats

54
Posts
30
Votes
Ryan Phillips
  • Investor
  • San Diego, CA
30
Votes |
54
Posts

Wholesalers, why take a finders fee and not partner?

Ryan Phillips
  • Investor
  • San Diego, CA
Posted

I often hear wholesalers discuss the legality and ethics of whether or not you are brokering a deal. So then wouldn't it make better sense to partner with your buyer/flipper. I see one negative in that you don't get immediate gratification of the deal, but if you are in it to win it this seems like a good strategy to partner. For example, I find a lead and get into the contract subj to partners concurrence. Then I find a buyer who wants the deal. We agree for me to receive a percentage (say 10%) of his final sale price-purchase price. This is good for the flipper because it reduces risk because if the flipper makes less then the predicted ARV then less is owed to the wholesaler/partner. If the flipper makes equal to or more than ARV then everyone is happy. The legal issues are avoided and the risk is reduced. Anyone doing this?

Most Popular Reply

User Stats

101
Posts
66
Votes
Aaron Phillips
  • Rental Property Investor
  • Burlington, KY
66
Votes |
101
Posts
Aaron Phillips
  • Rental Property Investor
  • Burlington, KY
Replied

Hey @Ryan Phillips

Partnering with a Cash Buyer/Flipper is essentially the idea behind Wholesaling. You build a business relationship with multiple Cash Buyers/Flippers. Cash Buyers don't care how much you are making as long as they're getting a good deal out of it as well. 

If I am misunderstanding what you're saying, feel free to elaborate a little bit. :)

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