Hey, I have a deal from a wholesaler and I have a cash buyer that i interested in buying the deal. The wholesaler suggested that I get paid by my end-buyer. What’s the best way to work this deal.
Example: If the wholesaler wants $105,000, then do I just get a flex option for $105,000, so that his property is not tied up and I have equitable interest to legally market the deal? If I want to make a $3,000 fee, then assign the option to my cash end-buyer for $3,000. Thanks!
I’ve done similar deals. Get an agreement in writing with the other wholesaler to sell to you for 105K and then have ur buyer sign your assignment of contract for $3,000
I wudnt move forward with out signed contracts, ask me how I know to do it this way.
Thanks Randoskie
Hey, I’m told that wholesalers with a low marketing budget can work with other wholesalers to do deals.
I was wondering if anyone is actually having any real success with this strategy of co-wholesaling/JV with other wholesalers to help sell their deals and splitting the assignment fee? Thanks!
Hi,
If you have a buyer on your buyers list who needs a 3/2 home less than $100k in Gold River Estates and you see that fellow wholesaler Diamond Jim has a house over on Copper Mining Lane and you know your buyer Slick Silver would buy it if you and Diamond Jim can make a deal you can call Diamond and see how the two of you can work together to sell his property!
Make sure if it’s a margin share it’s in writing other wise contract with Diamond Jim and wholesale assignment contract with your buyer Slick Silver!
This can work both ways when any wholesaler has a client or thinks his buyers list may have a buyer!
Good luck,
GR
How can I hate all realtors?
There is a Realtor in my town that I did a deal with last year, he’s a little smarter than most.
He kept asking questions about how I wholesale, cuz he seen I made $8,000 on our deal when he only made a few thou & he did all the work.
He actually txted me asking more questions a few weeks ago and then he purchased my book.
This guy don’t mess around, he’s already found a killer deal of 2 houses on one lot for 70K
I just got it sold for 82K, We are splitting 12 Friking thousand dollars assignment fee.
That is if everything goes to plan, and it most often does.
Let’s make some Money
Rando
Hi Fellow Wholesalers, I know some gurus teach using a flex option to get equitable interest with the original wholesaler and some teach using a double assignment method to gain control and do the deal.
My problem is that I contacted all the wholesalers I could find could in my area on CL and via Google search and none of them will agree to a split of assignment fee. The ones that will even entertain the thought of working together suggest that I get paid from my end-buyer. Maybe I will try another area and region to see if I get a better reception of this strategy.
So this means that I would have to raise the price of the deal in order for me to make a profit on the deal. So what would be the best way to structure a deal this way where I get paid by my end-buyer? If my end-buyer sees me advertising the deal at a higher price than the original wholesaler, why would he buy from me?
Thanks
Hi,
Peter if you were a wholesaler and someone approached you wanting half your money / some percentage of your money wouldn't you be somewhat shocked and resentful of and reject that offer, I sure would!
However if you know wholesaler Bob has not been able to get a buyer and he even went back and renegotiated another lower offer deal and still has not moved the property in 11 days, then it’s time to approach Bob and suggest you might have a buyer on your list that could be interested, how can we work together to make a deal happen? Let Bob state his offer and then you counter, don’t tell Bob “Hey take half of your margin” as his mind may not have wrapped around the thought “Half is better than nothing yet”.
Otherwise I have taken a lot of properties priced appropriately and added a margin of say $2,500 dollars and sold that deal! It doesn’t take a rocket scientist to understand it’s about position and about money!
When Wholesaler Bob has his 3rd negotiated contract fail to appeal to a buyer and the owners summarily reject negotiating a 4th contract, swoop in and contract the property yourself. There seem to be an awful lot of greedy wholesalers who can’t seem to understand it’s better to make a little something than to have nothing!
When I hear option my mind is thinking 1 or more years, when a seller wants to sell contract for sale is often the only thing they want to hear and option seems to just tie there property up and delay a sale that the seller wants now!
GR
My very first wholesale deal was a house I got on contract for $10,000 I cudnt sell it for 18 or 15 and finally I was trying to get a $2,000 assignment fee. This house was so bad, one guy told me he had been rehabbing for 35 years and this was the worst he had ever seen. I had a lot of calls from my CL ads, after all, how often do you see a house in California for 12K?
I got a call from a guy claiming to be the wholesaling king in my city, he was a fast talking dude and was pressuring me to give him the deal and he wud get it sold and we wud split the profits.
Maybe I shud have, but I didnt know him & I didnt trust him, he sounded like a salesman on steroids.
Finally I got a call from a farmer that wanted to have his workers fix it up and rent it to them. And I got my $2,000.
So yea, like Gold river says, its how you approach people. If he wud have said he wud get me the 12K and he had a buyer, he cud of added 2 grand to it and sold it for 14K Where was his buyers list?
This wholesaler wanted me to give him the name and number of my seller, & I just wasnt comfy with that.
I talked to this wholesaler a while later and he was now a realtor.
The moral of the story? Dont tell wholesalers you want half of their profit. Offer to help them sell it and you will add your profit on top. Then after a week or 2, then you can renegotiate. Also, Build relationships.
Thanks Gold River and Randoskie! Hey I was following a real estate course that I bought regarding selling other wholesaler’s deals and using the double assignment method and splitting the assignment fee. You guys have a lot experience with good and valuable knowledge. I’ll offer to help move the wholesaler’s slow moving inventory at their price. Thanks!