BiggerPockets

I have a question for experienced wholsalers.

I am not saying to make this a full time practice, but do any of you ever co wholesale a deal with another wholesaler and split the profits? I would imagine yes, but never know.

If you do, what kind of paperwork do you establish between yourself and the other wholesaler, so when everything goes to closing, the title/escrow company knows there is 2 wholesalers to be paid the assignment fee?

Yes, I have, and I used the same paperwork that I'd use for a normal wholesale deal: an assignment agreement and NCND (which is optional).

Another option is to double close that deal, and you'd use another P&S instead of the assignment agreement.

Tom, this is a very common practice. Alot of wholesalers will be happy to let you co wholesale thier deals if you can help them reach a larger buyer base. It's also a great way to build your buyer list if you don't have any deals of your own. As someone else pointed out though, there is no assignment. You are not technically a party to the transaction. Most wholesalers will call it a marketing fee. I recommend identifying some of the top wholesalers in your market and calling them and asking of you can market their properties to your buyer list (hopefully you have a buyers list). I think you'll be surprised at how many will be happy to have you do that.

Good luck!

I do this all the time. I work out an agreement with the wholesaler based on the deal. Sometimes we split the spread, other times I get the property under contract and just add my fee to their price. A majority of the time we just split the spread 50/50, technically I am doing half the work I want half the profit. May not work for everyone but it does for me.

Here's a thread that covers this same subject: co-wholesaling

In my market I find that many "wholesalers" are simply marketing other peoples deals (or MLS deals) for a higher price. Most of the original deals were already too thin to be considered a real wholesale deal and the additional fees push the prices to discounted retail levels... at best. The funny thing is when you find a deal marketed by multiple "wholesalers" and it's listed with different ARV's or deflated repair cost.

A wholesalers job is to locate good deals, put them under contract at a deep discount, and assign their contract to investors. A wholesaler is paid for their ability to analyze, locate, and lock-up deals... Not for their ability to pitch over priced junk to novice investors on the internet that may lose thousands of dollars. I feel like some people that get into this industry forget (or ignore) that people are risking real money.

If you're going to be a wholesaler, go out and get good (deep) deals and sell them at a fair investor price. Do work and provide a value to your investment community.

I do understand when wholesalers market other peoples deals as long as the price is not inflated past 70% of ARV. It is great if you're selling another persons deal at a fair price and your splitting the assignment fee. You are then adding value to the wholesaler and should be paid for your service.

I love it Stinson. :D

Co-wholesaling has been around as long as wholesaling. However the term is relatively new. Whenever I hear the term "Co-Wholesaling" I immediately think newbie who has been sucked in by Guru promises.

I do this on a deal by deal basis. Sometimes I have split the wholesale fee, other times I just charge a small fee to the other wholesaler to help him move his property to one of my buyers.

Newer wholesalers who contact me will find that I prefer helping them to think through their options. I give advice about the deal and help them think through how they are doing the deal. This usually gives me the opportunity to develop a long term business relationship with them and they often come back for advice or to pass along another deal to one of my buyers, and I collect a fee again.