Recently, I had another wholesaler reach out to me, insisting I should send him the details of a house I was trying to get under contract, so he could find a buyer and we would split the fee. I hadn’t gotten my contract signed yet, so I was not giving anyone any details, plus I have my own buyers list that I wanted to shop the deal to first, but this guy was insistent to the point of being kinda pushy, and then seemed upset that I wouldn’t cut him in on the deal.
Similarly, from the replies I got on another thread, I am getting the feeling that if I am not making deals with other wholesalers, regardless of my own ability to find a buyer, I am being a “hog” or “trying to double-dip”.
I am very new to real estate investing, I don’t have a coach or mentor, so I don’t have that insight into the industry norms/culture or other common business practices. Are wholesalers that find a seller, then try to find a buyer on their own instead of making a deal with another wholesaler frowned upon as being greedy? To be clear, I am not talking about situations where I tried to find a buyer and couldn’t (clearly, if I can’t find a buyer, it is better to work with another wholesaler and get half a fee than to lose the deal and get no fee at all), but rather I am talking about if it is considered greedy to even think of finding my own buyer and keeping the whole fee to myself?
Are you running a charity or a business? If they were not your partner to begin with and you don’t have a partnership agreement, who cares what other people think? If you don’t trust that someone will make you better off than if you did it alone, you don’t partner with them period. You’re a business, not a charity. At the end of the day, it’s your bottom line that will make people want to partner with you. The successful ones don’t want to partner with someone who can’t prove they’ll make them lots of money, so maintain your course. It’s the right one. You need to learn to be tough with people that are pushy and get upset with you when they have no right to because they were never your partner to begin with. You need to learn to roar like a lion when someone you don’t like walks into your den.
It’s not greedy to not share your deals if you can find a buyer for each one. 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.