I believe I am reading that's okay for a co-wholesaler (who has the buyer) to earn $5,000 in an assignment transaction (from the buyer). However, I thought I saw that co-wholesalers (who bring the buyer to the table) earns only a finder's fee (from the wholesaler on the seller's side). This is what I believe I am seeing in the forum questions and elsewhere. If this is so, please explain the disparity regarding the fees.
Wholesaling is not a unionized profession like Realtors and Teachers, and that's a good thing! That's why they can make, split, divide, share as much as they want. When you join a Union you agree to group negotiated salaries. When you are in business for yourself (free enterprise, capitalism, real life), you can make as much as the market (buyer, seller, deal) will bear. Meaning the better the discount you provide to the end investor, the more you can earn for yourself.
This means there could be deals where the wholesaler makes 5k, 3k, 1k, 500, or even 0. Everything in real life is negotiable and flexible. There is no 'That it's ok to do x', either the deal will support the markup or no one will buy the deal.
There is no 'set fee' for wholesalers, unless they created it themselves. There is no 'set fee' for flippers/investors, unless they created a minimum model for themselves (usually for their own protection and to value their time). The only people in real estate who are told what is "ok" to charge are the union paying members (aka Realtors). And that too is negotiable.
Also FYI: I've never heard the title/term co-wholesaler being used.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!