How Do You Partner On Wholesale Deals?

1. First of all you will need to know what type of closing it is going to be. Contract assignment, selling the LLC or Trust, double close etc.

2. You will need to see the contract between the seller and the wholesaler. Often times you will find that the "wholesaler" does not control the deal. It is just a long line of wholesalers involved. I usually stay away from these "daisy chains".

3. Have the wholesaler provide you with the contracts needed to do the type of closing that will be taking place. You fill in your buyers information in the contract. You handle all the contract signing and getting earnest money from your buyer.

4. You then meet with the wholesaler and have him sign a referral fee agreement stating the wholesaler will pay you X amount at closing for providing the Buyer XXXX for the purchase of - Property address. Once this takes place give the wholesaler the signed contracts and the earnest money.

5. You can have the wholesaler sign a NDNC concerning your buyer but I really feel up front communication with your buyer and the wholesaler does just as much good. The buyer can't go to the wholesaler without you involved and the wholesaler cant go to your buyer without you involved. Make sure all parties understand.

The signed NDNC is really not worth more than the paper it is written on. Going to court and proving a loss or whatever is usually not worth the trouble. Better to work with people you know and trust.

Hope that helps,
Michael

I agree completely better to just go for it & possibly make $ or be afraid of giving up your buyers & making nothing.

Better to make something than nothing, not that you are saying that but i say thta bc I did that in the beginning, writing up NCND's left & right & being anxious about losing buyers & I would up losing out on deals

So I just say this to help others who might feel that way in the beginning, just go for it! The worst that can happen is give up your buyer but you have a chance to make $! And buyers are everywhere, & they will love you for turning then on to a deal & if the wholesaler burns you, your buyers will most likely take care of you anyway(which happend to me on my lst deal, my buyer is going to pay me 7k)

Bc they want you to keep sending them deals, that's why.

forgot to say another thing you can do is that when I am co wholesaling i dont write up an agreement with the other wholesaler unless I am double closing the prop or they are-then yes I write something up-not that it matters much but always to get something in writing right.

Otherwise when the other wholesaler is assigning the deal or I am then I just put their name in the assignment contract of who is getting paid what out of the assignment fee-or I tell them to just include me on theirs or I just write it up since I have a good assignment contract easy to read/edit.

Boom-co wholesaling without all kinds of NCND's, like Michael says they are not worth the paper they written on. It's all about can you trust the other person & do business with them, the second they cut you out of the deal just cut them off black ball them & tell your buyer(s) & they will most likely take care of you ok.

Great breakdown, Michael!

Karen

should I expect for referring a fellow wholesaler to my buyer, and should I always expect a cut for providing a buyer?

Well that sounds really good about the NDNC never trusted them at all and lost a very good deal once using one with another partner, buyer went right around us and took all the deals,( multiple ) big deals, I like dealing with trusted people, makes life so much easier, Jim