Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Wholesaling
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 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. :)

Loading replies...