Wholesalers, why take a finders fee and not partner?

Wholesalers, why take a finders fee and not partner?

Investor · San Diego, CA · Member since 2017 · 54 posts · 30 votes

I often hear wholesalers discuss the legality and ethics of whether or not you are brokering a deal. So then wouldn't it make better sense to partner with your buyer/flipper. I see one negative in that you don't get immediate gratification of the deal, but if you are in it to win it this seems like a good strategy to partner. For example, I find a lead and get into the contract subj to partners concurrence. Then I find a buyer who wants the deal. We agree for me to receive a percentage (say 10%) of his final sale price-purchase price. This is good for the flipper because it reduces risk because if the flipper makes less then the predicted ARV then less is owed to the wholesaler/partner. If the flipper makes equal to or more than ARV then everyone is happy. The legal issues are avoided and the risk is reduced. Anyone doing this?

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Rental Property Investor · Burlington, KY · Member since 2017 · 101 posts · 66 votes
9y

Hey @Ryan Phillips

Partnering with a Cash Buyer/Flipper is essentially the idea behind Wholesaling. You build a business relationship with multiple Cash Buyers/Flippers. Cash Buyers don't care how much you are making as long as they're getting a good deal out of it as well. 

If I am misunderstanding what you're saying, feel free to elaborate a little bit. :)

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