Co-Wholesaling ediqutte

4 Replies

I am looking to close my FIRST wholesale deal! I decided to co-wholesale simply because I need a mentor through the process. We verbally agreed that we would split the profits. The seller signed the contract in which my name and not the co-wholesaler is listed. When a check is made out for payment, am I correct to assume that it HAS to be in my name? Or should I have a contract stating the profit agreement between the co-wholesaler and I? Thanks. 

@Aishah Amina If you included "and/or Assigns" as the buyer you could have it made out to both of you or get two checks.  Otherwise, if you get the entire check, get a W-9 from the other wholesaler, cut them a check after your clears and have your tax preparer issue a 1099 for him/her at the end of the year.

Originally posted by @Larry T.:

@Aishah Amina If you included "and/or Assigns" as the buyer you could have it made out to both of you or get two checks.  Otherwise, if you get the entire check, get a W-9 from the other wholesaler, cut them a check after your clears and have your tax preparer issue a 1099 for him/her at the end of the year.

 That is good to have a check made out to us both. I hope the buyer wouldn't see it as an inconvenience. With this being my first deal, I have not thought that far ahead in preparing taxes and such. Thank you for the information! 

I always do a JV agreement. A handshake now days seems to be no more than that..... a shame. Anyhow, a 10-9 works just as well. With the JV the monies will be split accordingly at the closing table and be disclosed on the HUD. Tends to work out better for me.

I always do a JV agreement. A handshake now days seems to be no more than that..... a shame. Anyhow, a 10-9 works just as well. With the JV the monies will be split accordingly at the closing table and be disclosed on the HUD. Tends to work out better for me.