How to structure a deal with more than one wholesale marketer

Bird Dogs, Wholesaling
1

I am partnering up with another wholesale marketer who is partnering
up with another wholeseller that has properties that he needs
to sell. If one of my buyer’s wants to purchase the property what
do i do from there??

Thanks
Valerie

2

Wow, that it quite a chain to go through but it is possible to do a deal like that. All of you need to get together and figure out how much you all can potentially make as a whole, then maybe you can treat it like a bulk reo deal with a master fee agreement, and a sub see agreement?

3

You make sure you have an agreement with all parties involved. It is not unusual to partner like this, although I stay away from more than one other party involved. How much is your cut?

4

thanks for your help. I got another question I got another wholeseller that says my other buyer buys is house he will give me a finder’s fee do i get an agreement signed on this?? some type of finder’s fee agreement??

Thanks
Valerie

5

Rule number #1 in wholesaling. Always stay in control of the deal!!! If you have a buyer that you found on your own, then you owe the other wholesalers nothing unless you have something that says otherwise in writing. It’s YOUR BUYER not theirs. My thinking is this. If I contact another wholesaler to try and help me push a property, and he or she doesn’t have a buyer, then I don’t need to be dealing with him or her, because they don’t have a buyer for my deal,

6

A flex option is your best bet.

7

Hustle hard in the beginning. Get your list built up ASAP. You are going to have enough buyers if you just put the work into gathering them. Once you get you a good 10 cash buyers don’t stop go for 20, just make sure that your marketing that you are doing to find houses as continuous as well. If you have a good deal, your numbers are right, there’s a profit margin and therefore you, you don’t find a buyer, and you’re going to get paid. Do-it-yourself man. you can do it. :biggrin

8

Here is my opinion on working with other wholesalers:

Working with other wholesalers is one of the BEST and SMARTEST things you can do if you ever want to do a serious amount of flips. If you have this scarcity mentality where you think there is a limited amount of deals out there or if you think other wholesalers are out there to “screw you over” you’re never gonna get very far in this business.

On the other hand, if you have an abundance mentality and realize that there will always be a plentiful amount of deals out there, and that working with as many other wholesalers as you can will benefit you more than you can imagine, you will be able to make soooo much more money in this business.

You can only flip so many houses as an individual wholesaler. However, imagine how many houses you can flip if you work with 10, 100 or 1000+ other wholesalers! Who cares if you have to split the profits with them. What’s more? Doing 10 deals on your own and keeping every penny? Or doing 100 deals collaboratively and only keeping half? Its simple math. And who cares if someone screws you over on a deal. Suck it up, move on, and don’t ever deal with that investor again. It’s that simple.

What I do is I send my deals out to my buyers first. If nobody wants it then I send it out to other wholesalers and see if they can find a buyer for it. If they can, I split the profits with them 50-50. Why throw out a good deal when you can make half the money on it?

I only try to send out my deals to other wholesalers after I’ve tried to find a buyer myself. Partnering up with others on other deals is a great way to earn extra cash.

People doing deals together as a group can make a WHOLE LOT more money collaboratively than each individual person can make on their own.

9

Good advice dukefan2014! I haven’t gotten a lot of calls from cash buyers, but I get a ton of calls from other wholesalers. I always give them my information so that we can possibly partner on other deals. I did hear that there are some wholesalers out there that just don’t want to. They are missing that abundance mentality.

10

That’s great. My mentality is to trust someone until they give you a reason not to. If another wholesaler screws you on a deal you found (goes behind your back and does the deal without you) just dust it off.

Don’t waste your time arguing with them or trying to bring legal justice to the situation. Simply move on and tell them that you will never work with them again. They will just never get the satisfaction of working with you and doing multiple deals with you. Their loss.

11

i just did a deal with another wholesaler last month this is what i did and why… first i had a few buyers and no house to send them so i called a few wholesalers i knew up like hey i got a few buyers looking in these areas for deals do you have anything??? one said yes he sent me the details so i told him hey im going to send this info over to my buyer and i know i can get them to buy alittle higher so i’ll add more on top and that will be my profit he agreed i shot the details over to my buyer and i pocketed 3 grand… sometimes i just split the profits with the other wholesaler if theres no room to add more because im bringing the other half to the wholesale equation my buyer so give me half the money depending on relationship with that person… you can also let them know that you cant use my buyer again without them letting you know or have them sign a disclosure that they cannot contact your buyer for theyre own purposes…

12

Great point Chuck!