Updated almost 9 years ago on . Most recent reply
Ever Witnessed a Wholesaler being ABUSED by Cash Buyers?
This week in Atlanta, my partner and I closed a $45,000 assignment on a wholesale deal.
This deal was brought to us by a newer wholesaler who was hoping to make a few $G's on the deal. In fact, he would have been thrilled to make $5,000. Most new wholesalers would.
He brought us the deal BEFORE contract, and entrusted us (we have a TON of experience closing deals) to do the negotiation and contract the deal. We probably got it for $20K less than he was going to offer anyway-we signed for $37,500. The ARV would be $125K-$135K with about $10K-$20K in renovation.
We priced the deal to move at $67,500 and pumped it out to my Buyer's List ( about 20,000 buyers) and we got a frenzy of activity.
With multiple, above asking offers, we closed the deal at $85K and after some closing costs, we split a little more than $45K three ways.
It was a great deal for all 3 of us.
These are my absolute favorite deals-where essentially a Bird Dog brings a lead and I treat them to a partnership split in the deal.
I see so many Cash Buyers give wholesalers a few grand for bringing a deal and then go off and make $50K-$60K or even $100K after doing the flip. I'm not arguing that the Cash Buyer doesn't deserve the lion's share of the deal, but I love being in a position to get much healthier Wholesale Fees for my Wholesale partners.
You can bet for the guy that just whacked up that $45K assignment with us this afternoon-it's going to be a good Christmas this year!!
Most Popular Reply
Sounds more like the wholesaler Abused the cash buyer. They had to be a newbie. Mike B I agree no profit in that deal.