co-wholesaling?Anyone doing it? Done it?

Question

So I am new and I get my seller/ business site up and....no properties to showcase=no credibility! However there are other wholesaler/investors near me with properties..hmmm. Do I contact them, and see if I could market there properties and add my fee? Is it legal to do w/o a R/E license?Is there anyone who is doing this right now?

Ned Carey · Answer

Yes Co-wholesaling can be done. However it is not near as easy as the Gurus pushing this new term would make it seem.  (The term is new, not the strategy)

I have a couple of wholesalers trying to co-wholesale some deals for me now.  They are not having much success but I know when I get around to marketing them myself they will sell quickly.

There is nothing wrong with a seller site. It is NOT a priority however. I got mine up and running about 2 years ago. That's 8 years and dozens or deal after I started.

Co-wholesaling  isn't likely to build much credibility. Most people trying to co-wholesale are sending the same deals out other people are sending.   Most experienced investors are on lots of buyers lists. They see the same deals from 8 different wholesalers.  That doesn't build much credibility for the wholesaler who is sending a deal he has seen 6 times already.

It is perfectly legal to wholesale a property you have under contract.  You do not need a RE license.  However if you are co-wholesaling and do not have a contractual interest in the property that would  likely be considered "Providing RE brokerage services without a license."   You would need to get an assignment of contract, which you would then re-assign.

Good luck - Ned

Brian P. · Answer

Yes, this has been done. As a matter of fact early in my business there were not that many wholesalers around. Those of us that did it started a sort of a wholesaler MLS. We just created a non-exclusive option we gave each other with a info sheet. Now an option without an option payment is just a legal offer but not binding so we used that and no one needed to put out a dollar or anything else and they had what they needed to offer it to their buyer prospect. Only the original wholesaler had real control of the property.

Justin Fernandez · Answer

Ummm...awkward. I found this post but didn't see the dates on it..>.>, my opinion still stands though!

Justin Fernandez · Answer

I'd love to JV deals because that's less work!  But finding a decent wholesaler to work with is harder than getting the deal. Greed kills more relationships because making the most money from the little work they do is what kills it. A good wholesaler can work a handshake deal and split the assignment. But most people view everyone as competition when in reality, it's just a false mindset created by scarcity that just doesn't exist.

Brian P. · Answer

Matthew

Sorry to confuse you. First forget what we did back then, it was the 70's. Now days you just network.  I will always work with another wholesaler on a handshake, but often new wholesalers are afraid to give up a buyers name.  And I don't blame them, there are many unethical and dishonest people out there. So you need to trust whoever you sleep with.

In the past I had wholesalers take the deal info to their buyer but not give me a name, and then the buyer tried to deal direct with me and did. I didn't know the buyer was a result of a wholesalers effort, and the buyer won a small reduction from me because no one else was involved in the deal I thought. So it became my policy, no name, no protection, no money.

The last time a wholesaler told me no name I just had to laugh. I just asked is your buyer going to take title to the property? He said yes. I said think about that for awhile, how long do you think it will take me to find out who bought the property and add them to my list if they are not there already?

Account Closed · Answer

Everyone here has great answers.

I just recently co-wholesaled a property in Phoenix AZ. The wholesaler had property on contract, and I found the cash buyer. When escrow closed, he sent me $5000 as a commission.

I love working with other co-wholesalers.

Sometimes I have cash buyers but no deals.Sometimes I have deals but no cash buyer.I'm sure we can find ways to mutually benefit our endeavors.

To all the out there wholesalers, I'd love to connect.

Please email me: manuelangeles@avelosenterprise.com

Matthew Morganstein · Answer

I think i've misunderstood this response, however I think it's relevant. Would somebody clarify please.

co-wholesaling?Anyone doing it? Done it?

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