Co-Wholesaling

[Tom Jones]

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?

[Stinson Bland]

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.