BiggerPockets

I am currently building my database of investors for my wholesale deals I place under contract. My question is what happens when you run into another wholesaler? How should you approach that person so theres a win win for both of you?

Yeah, Something like Wholesale 6 keep 1 then repeat.

I don't have a problem working with other wholesalers. They can feel free to market my property to their buyers, but I name my bottom line price and they add their desired profit onto that.

Douglas is absolutley right on his last post. I always have a drop dead number for my wholesale deals and then I will ad 2-3k on top of that for my sale price and for instances like mentioned above where a wholesaler will find you a buyer. I as well do not believe in having other wholesalers market up my property. I have the extra fee built into my price if a wholesaler finds me a buyer then I pay them. The extra amount also comes in handy near closing time where title insurance, liens or other issues may come up. This way I have extra wiggle room to help out either the buyer or seller.
You can use other wholesalers to help sell your property just tell them the price stays the same and they will get paid from you at closing.
Big E

Matt

If you want to be in the game for a long haul, make great money and sell your properties faster then the rest then you will always want to make sure you keep your numbers tight so the end buyer (investor, rehabber etc.) has plenty of room to make money. With that being said, Most wholesalers stick by the 8-10% rule on sales price (50k property should net you 3-5k profit in assignment). Personally I spend my time at the end sales price making sure that I can sell the property at a certain price first. You do not want to get greddy, you want to guarantee you can sell it quick. Some properties I had made 2k and others I have made 15k. A great wholesaler makes sure his end buyer can make good money because that will mean quick and fast repeat business as well as a good word of mouth to other buyers. I always have lots of buyers.

If I had a property at 50k and I new I could sell it at 56k through another wholesaler I would tell them the price is 56k and I will pay you 3k if you sell it. There are times when the wholesaler will make more then me and vice versus. Forget greed and be consonant of the sales price to ensure the buyer has room to make his money- If not your name will get a bad rap and you will not have nay more deals purchased from you

Big E

Great question Earl and I am sure there will be plenty of other post. 2-3 years ago The goal was to sell properties to investors at 65-70% ARV. I always was 60-65%. With the current market conditions and the excess inventory of bank owned homes most real cash buyers (the ones that close in 2 days) are looking for 45-50% ARV. Therefore I am looking for properties below these ARV's. Yes there are plenty. This week I purchase a 3bd block home for 28k (from a bank) and sold it for 34k. This property sold in 2006 for 145k was foreclosed on and currently it is worth around 90k. No matter what part of the country you are there are plenty of ways to find these properties. Sometimes you may have to put in several offers on the same houses week after week until the bank finally says yes.

To better answer your question I suggest you simply call up your preferred buyers and ask them what ARV or price point are they looking for. In today's market it will be around 50%