Co-Wholesaling works! $5K for bringing in a buyer and being a liason

Congratulations!! I'm learning to do that too! May I ask how did you find the buy who had the property under contract in the first place? Or did he reach out to you knowing that you have a buyer?

Im so happy for you...i cant wait until i get there..Go get Em

you are always a shining star!!

Awesome! Way to go! Keep up the great work.

Ryan

Congrats Tammy! Way to make your magic work in another area:)

The key is your buyer's list! If you have the buyers, you'll close deals. Plain and simple. If you build it (buyer's list), they will come (closing deals)!

Have a great weekend everyone!

Hi Aaron,
A lot of this business is networking. He was one of the wholesalers I have in my network. And, the buyer is also in my network.

If you goto local REI Clubs, you will get a lot of connections; I also use LinkedIn and Facebook to make a lot of my connections, and I have a guy on my team that all he does all day is call people and network. I've gotten many of my buyers on Craigslist and LinkedIn.

It is CERTAIN we will SUCCEED!

Michael, be persistent and you *WILL* do this. Get out and do it no matter how uncomfortable it feels to call people, that is your key to success!

Bill, you are too kind!

Erik, you know it! It not shameful to bring one end of the deal and partner with another person for the other end of the deal. There's no way I could provide this buyer with as much as he buys in a month, so co wholesaling is where its at!

Thank you ! Its great that the wholesale option is always available no matter which strategy you choose to do, it is there to fall back on for odds and ends that come up!

This is a short sale that's approved and its very interesting how this is all being set up! We are using an addendum in escrow that adds my buyer to the original contract in conjunction with the assignment of contract. Its all new to me!

It is CERTAIN we will SUCCEED!!!

thats awesome. I look forward to the day i get a deal like this!!! make half my yearly income in one short deal!

on your co-deal!

this sounds pretty interesting... assigning a shortsale with an addendum and an assignment of contract... will have to ask you more about that if my shortsale gets approved soon.

Learning and progressing every day,

Valerie

my buyer is trying to get the assignment fees reduced; because the seller's assignment fees are $16K and they would not pay me out of their fees; so he's trying to lower them by $5K. HOping I don't get cut out completely. I will keep all posted. Feeling bummed now, I put a lot of time in today trying to get ahold of the seller who isn't the easiest person to get ahold of, did my comp report for the seller, and am hoping that we can come to an agreement. Always something. The ARV on this one is actually closer to $850K; my buyer's getting it for $545K, but when he saw the contract is only for $524,500, he said the assignment fees are too high. Working on a solution now.

Since I've already called the seller prior to see if they could pay any fees out of their fees, I know I will have to reduce my fees; but I will let you know how it turns out. Always something.

Goto my main webpage and call me on the 714 #

Tammy,

that is really wrong-the buyer was fine until he saw the selling price that you got?
What if you told him that you will ask another one of your buyers if they want it? maybe he'll change his mind and won't mind paying the agreed upon price! 5K is nothing! you shouldn't cut your fee; he's making over 300K! what a greedy.... person!

wishing you success,
Valerie

What makes a home worth $845k, but paying $545k for the property? Maybe it's one of those Vanilla Ice homes? lol

Somebody is definitely greedy, here. As it stands, there's $21k in assign fees & dropping by $5k, is basically cutting your assign fee down, or cutting into their assign fee. And the rough communication between the seller & you isn't helping, either. I'm always available for a deal, anytime.

Basically, you're bringing the buyer, so you have enough clout as the seller(s) have on this deal. If you're worried they're gonna go around you, I would file a memorandum of option with the recorders office or cloud the title.

I hope you all get it figured out.

Time & Effort Pays!! Buyers list is BIG help and a MUST have.

Don't the have to sign a agreement for your fees prior to your working for them. Because he can say you were doing a favor for him. Am I correct. I just don't want to be taken advantage of.

I agree with Valerie!
I remember Greg Murphy said if you have one buyer, he or she takes control but if you have 10 buyers, then you take control. My suggestion is offer to other buyer.
Now that see this problem, I have to find more buyers in my bucket. .

Sounds like the total assignment fee is only 3.7% Very reasonable. If realtors were involved, the commissions would have been a minimal of 4.5% you would think. More like 6%. I would tell your buyer you have a full price offer and you will have to move on unless he signs the contract within the next 24 hours. Politely of course!

I do these types of deals all the time. It is easy money and no risk. You just have to have a buyers list that includes REAL cash buyers. I network with fellow wholesalers whenever and where ever I can. I always ask if they would like me to blast out their properties to my buyers list. I have wholesalers calling me several times a week now requesting that I bring them a buyer. If their deal looks good (75% don't!) I blast it out. EASY MONEY!

Necessary ingredients for this strategy for those that are interested in doing this.

1. At least 10 to 15 active REAL cash buyers.
2. As many fellow investors that wholesale properties that you can find!
3. Full disclosure from the very first discussion, BEFORE contracts are presented.
4. An ACTUAL wholesale deal supplied by your fellow investor.

Good luck Tammy, sell the deal!!!

Michael Mangham
MD Home Acquisitions LLC

The spread here is tremendous, and there is $50K in work to be done; but I have to give my buyer the benefit of the doubt being a flip and fixer myself. I understand it is risky for the investor, but I'm hoping he'll relook at the numbers. When I first sent the deal and prepared the comp sheet, he asked if it could be lowered, and then said, no, there's plenty profit; but yes, when he saw what it was under contract for is when this started.

Its also the seller that has it under contract who isn't willing to budge either; they aren't willing to use any of their $16K fees to pay for bringing the buyer; so I added my $5K on after their fees; I didn't think 1% of the PP was too much to bring in a buyer, especially that he'll use again and again.

We'll see how it turns out. I put my faith in God and know it will work out the way its supposed to. Its all I can do at this point as now the buyer could go direct to the seller for this and other deals. It was one of the reserves I had and why I had the seller sign an NCND; but I didn't even think of having my buyer sign it; maybe I should have. It will be another learning experience all around, we'll see how it turns out.

Thank you for all the advice. My buyer's list has many buyers, but with this deal, I got it to my best VIP buyer before 2 other independent buyers (I have several VIP buyers, but this guy got shodded out of another deal because someone else sold another deal after asking me to find a buyer (long story short)within minutes of giving it to me) and I have been trying to make it up to him; so if my buyer falls through, the seller has 2 other investors that will buy the property in line after my buyer.

Yeah, this home is by the movie studios, in a pretty exclusive area. This is So. California; our prices here are NUTS! $850K in a down market, yeah, I know, it is pretty crazy!

I don't like making my biggest buyer squirm, but he's never seen an assignment fee so high so it took him by surprise. I give him the benefit of the doubt and trusted God and it all worked itself out. My buyer isn't too happy, but I think that will change when he sells this property after the rehab. My aim to have repeat buyers, so I hope this didn't sever a relationship with my buyer.

Just ask the buyer to buy you out of the deal and release your paper work.This is business and if he doesn't want to do that find another buyer.Your cut is way to low to be haggling about it.If I new more I could probably come up with a better idea but my reply is based on your comments.
kris

I hear ya about most of the other investor's deals not being deals at all. I screen them well before sending any one else's stuff to any of my buyers. Glad this was worked through. Waiting to see how this shortsale assignment works. I thought there was a 30 day wait period on short sale deals. Hmmm....

I am glad this deal worked out for you. I too am curious as to how it will play out :0 Let us know once it's finalized. I was under the impression that there was a wait period on short sales too

To wholesale $850k house L.A. You are rocking, Tammy. I wish you the best on finalizing that deal and when it closes, it's gonna be a proof that it works anywhere in the U.S., even in a such high priced market as in Los Angeles.
YOu are walking proof of that.
Congratulations, you are strengthening my faith!
I will do that too!

Take care,

Dennis

Congrads!

Very encouraging. Please post detail as soon as deal is finalized

I always say 50% of something is better than 100% of nothing