When dealing with other wholesalers what’s the first step in JV? Do we half the deal or is there a percentage involved, if so how much?
You can structure it any way you choose. The most advantageous way for you is to have the wholesaler mark up your selling price. You contract to sell directly with his buyer, and pay him the difference at closing. You can use a lien invoice, or call it an acquisition fee, or whatever. This way, you can still pocket your profit, without having to compromise any of it.
If you’re desperate, you may need to offer half the profit, or anything just to get the deal done. But, bottom line, it all comes down to how much you need this other wholesaler in the deal. If you don’t need him, don’t use him. If you can use him, but are not desperate, tell him to mark up your selling price and bring in a buyer. And, if you’re desperate, offer whatever to get the deal done.
A good idea is to just ask him what he wants. Then, you can negotiate off of that…
I do a lot of JV deals with other wholesalers. We usually split profits 50/50. But it’s really up to what you agree on.