Co-Wholesale?

Question

Co-Wholesale?

I joined a REI facebook group. After introducing myself, I received a message. "let's co-wholesale deals in Las Vegas, I'm in California". After I ask him what does that mean, he says,

"For example!  400k property I found for wholesale,  you bring cash buyer that pay 3% for wholesale. And we split between.  When you find we can do same way. If my cash buyer bought the property  we split the same."

First of all, if all we're making on a $400,000 house on a wholesale deal is $12,000 to split 2 ways, seems rather ridiculous.

Secondly, the entire thing sound preposterous. Why would I need him, or why would he need me?

Thirdly, I don't know this guy, and neither does he me.

Account Closed · Answer

Hello @Kevin Cardinale

Just last week I co-wholesaled a property in Phoenix AZ. The wholesaler had the property under contract, but I had the cash buyer. At the close of escrow, he sent me $5000. So it's nice working on deals with other wholesalers

Sometimes I have cash buyers but no deals.Sometimes I have deals but no cash buyer.It's always nice having other people who have the same endeavors as you.

Feel free to send me an email: manuelangeles@avelosenterprise.com

Russell Ponce · Answer

I dont know, Im running my business as usual and someone wants to send me quality leads to close? I get $6k (in the example) of a deal I never would have had and I didnt have to market  for it. He grinds through the monotonous part of wholesaling and when he finds something that looks good he's got a guy who knows the market and can land the plane. Seems alright. If memory serves its similar to the setup Mike Nelson speaks about in the podcast.

Bill Gulley · Answer

You do have a "block button" on your PMs, that will usually be a good response to those soliciting business that you don't want to be bothered with.

Good point, besides the logistics of splitting fees without a license.

If you were in the same area that could be a partnership but I certainly don't suggest getting into any partnership with people you don't know. :)

Kevin Cardinale · Answer

Thank you. So as a general rule, partnerships should be limited to those who are actually here in VEGAS? For the purpose of, if they screw me I can punch them in the hose? save me a plane ticket? (i'm kidding) But, if I wanted to sue them (same thing) they would be right here.

What I really didn't understand was, how the terms he set were beneficial at all to either person.

Co-Wholesale?

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