Selling my Wholesale Business...need advice

[Chris Speights]

I have been wholesaling for around 3 years, now. I have pretty much always worked with a partner. I work a full time job in Oil & Gas, but was doing wholesaling on the side. This partner of mine does wholesaling full time, among other real estate investment ventures. He is very good at what he does. About a year ago, I received a promotion at my job and it really limited what time I could spend with the real estate.

After this promotion, we adjusted our split as partners because he was doing the majority of the work. In fact, my only real responsibility was lead generation. This also became too overwhelming for me. Which brings me to my current problem.

This partner and I had talked about just leasing my business to him and giving him total control for a small split of every deal each month. I was okay to try this, but he has several marketing people working with him now and they decided that my sites have value, but need work because they are under performing. Because of this, he will have to spend quite a bit of money getting it up to par. So, he says because he has to do this, it makes more sense for him to acquire my business outright.

He is basically asking me for a "number", what I would consider selling it for. My business doesn't consist of a lot, but the value to him is that I have a few years of adword history on my sites, which apparently adds value when you advertise on Google. So, in short, he's really just after my site. But, because I could keep the site and basically do the same things he's going to do with it and make it more profitable, it adds value.

So, the question is, how do I decide how much to sell this "business" for? I am guessing standard rules of business valuation don't really apply here. Also, like I said, we're friends, so I don't want to offend him or anything. Just looking for a little guidance.

Thank you all so much

Chris

[Ryan Webber]

Kevin Tunney, owning your own business isn't the best thing for everybody, and most wholesalers I know would actually make more money in a 9-5. Building a successful business is no easy feat, and some people work better under structure and reliability.

Chris Speights, I personally don't think what you are offering to your partner is worth that much. Wholesaling is 95% work. Its EARNED income. Yes, there is value to your established website but I couldn't see putting a price tag of over a couple thousand dollars on it. Let's say $2,500. From my perspective, anything more is based on the value of buying out your interest and not necessarily based on the value of the website you developed and control.

I think its more important to focus on making sure your friendship is fully intact when your done. That is worth a whole lot more than a couple thousand dollars. You've made money off of your efforts and off of his, and now you are moving on to something else. It seems like he's been understanding and worked with you, so just make sure you return the favor.