Updated about 5 years ago on . Most recent reply
Wholesaler Team Up - Win...win?
I have been working with wholesalers recently in order to increase my deal flow. When doing this, I found a likeminded person who I think I'd want to work with. We were speaking about a potential deal as follows.
Him: Good lead gen, contract assignment is a bit high, very open and easy to work with, no time to go to homes, not a lot of knowledge in estimating rehab costs
Me: Also open and easy to work with, or so I like to think! Cash investor, decent amount of time, most of my day spent looking at homes already, no income other than rentals, accurate rehab estimation.
I think this works for us both, but the reasoning for me:
- Only 1 stream of income
- I already look at houses all-day
- More reps at houses doesn't hurt
- Can still manage my rehabs and tenants while doing this
- Already have sales experience
- I enjoy it
- Hand selecting properties
- Literally no lead gen of my own
The big question is compensation! Of course as an investor, I'd like to actually be able to pick up some of these deals. This is something we both agree on, but he still needs to be compensated on everything up to getting the appointment.
To clarify.... his work is everything to get to the appointment through his lead funnels. My role is to go out in person and close them.
What is a fair split if we sell the contract to someone? 50/50? What is I sell the contract to someone I know?
What amount is fair to pay him for the contract assignment I'm able to close? Note he will not have to spend time to sell the property to his cash buyers.