Looking for properties in my area I have noticed more than one wholesaler marketing the same property(Company A / Company B). One of these companies has the the property under contract to sell/ (Company A) ? Company B comes up with buyer. How does the economics of this work? How do you market something you do not control?? It looks like from my vantage point that they both own the property. The marketing is almost exactly alike. if you can give a simple explanation it would help. It will take a month or so to get all my dumb questions out of the way.
Hi,
In my area a wholesaler buys outright or contracts a property and then places it for sale with a commission offered, a lot of the other wholesalers are licensed realtors and the original wholesaler will pay a commission upwards of 5% to buyer agent for a deal, so the other wholesalers will sell there competitors properties for $5,000 per hundred thousand of value because the networks of buyers are different to every wholesaler.
GR
A lot of the time, wholesalers may work together. Usually company b marks up company a’s price. If they are the same price, company a is likely only paying a bird dog fee to company b. So, company b may be a bird dog and not a wholesaler. They may have some separate agreement outside the transaction you’re seeing.
My mentor tells me to market his properties all the time. We do this so that I can build a buyer’s list. I do mark the property price up some, but even if I make nothing and get 10 buyers, it pays off for me in the long run. So, there could be any number of explanations for what you’re seeing.
You asked " How do you market something that you don’t have any control over."
Well you really don’t know what wholesaling is. My contract gives me total control over the house within 30-90 days if I choose. Nobody can buy the house but me, I have every right to market it how I want etc…
First of all, if to many hands are in the deal, something is bound to get get messy.
Get the calls flowing your way first. Once you have established this, you now have to upper hand. Get the sellers to call you!!1
It is the best way to go. :biggrin