Co-wholesaling – These are Just Some Basic Stuffs, But You Should Know These
Working as an individual is always good, but things get even better if you have got a team to work with. This is pretty true in case of wholesaling too and therefore, the term co-wholesaling came into existence. If you are into real estate industry for some time already, you may not be alien to this term entirely. Through this strategy, you create a joint venture with some other wholesalers in an attempt to strike a deal. Remember, to start as a wholesaler, you don’t need to have any monetary inventory. Not only that, but with this, you can enhance your knowledge on real estate industry pretty fast. The cash comes pouring in as well – do you know of any better way to earn and learn at the same time?
Things are not as easy as it may sound though. When you are starting things, the biggest problem that you may face is finding a good enough property to sell to the potential buyers. You may have a cash buyers’ list, but that may not work if you don’t have anything to sell. Co-wholesaling can help you out in such circumstances.
What is co-wholesaling?
When you are working as a co-wholesaler, there are two things that you will be performing: either you will be providing buyer for a specific deal to your partner, otherwise, you will be supplying the other wholesaler with a property to sell. Your partner does the same for you. You make an agreement with your partner and based on that, the profits generated are divided between you two. Make sure that the co-wholesaling agreement has all the associated terms and non-completion cause properly mentioned. A co-wholesaling agreement should be good enough to protect interests of both the partners and it should be duly signed in front of lawyers as well (As you may not be aware of all the legal terms mentioned in such documents).
I just thought that while reading about co-wholesaling, a quick video guide on the steps to create joint ventures might prove to be useful for you. Thereby, I am sharing this below video and I hope that you will find it to be useful enough.
Co-Wholesaling Real Estate -- How to form Joint Venture with other Wholesalers
Co-wholesaling – what are the advantages?
When you are into wholesaling, you should have a buyers’ list. When you get into a partnership with someone into your field, you basically get access to the buyers’ list of your partner. This helps you to increase the size of your own list and may help you out in the future.
Finding a property satisfying all the requirements of the buyer is not really an easy task. At the same time, you cannot just let one of your buyers go to some other wholesaler as that’s going to hurt you on the long run. It also ruins your impression in front of that buyer and calls for negative word of mouth publicity. Things get trickier when you are a new buyer, have a list of potential buyer, yet you don’t have access to good enough properties. With co-wholesaling, you not only get access to a whole lot of properties, but, you are able to make your inventory bigger as well. For future, that’s an awesome thing and you can possibly take your real estate business to the next level with help of this.
Do You Have a House of your Own?
Co-wholesaling – if you are into it, remember these points
The big question is how to find co-wholesalers! Well, you can look out for the “we buy houses” bandit signs whenever you are outside. You can search on Google for them too. Another way of finding your co-wholesaler is to search on the internet classified sites such as Craigslist or Backpage (These are the most reputed ones; however there are other ones that you can use as well).
Don’t try to make it big with the very first deal that you make. It’s easy to make $20k with a single deal for sure. But, if that happens, the co-wholesaler may never come back to you for striking another deal. So, it’s better to charge small at the beginning and create a bond of mutual trust. This ensures further business on the long run and you almost certainly will make more money. When you are starting, lure your co-wholesaler by presenting yourself as a person who is always there for providing discounted deals.
Co-wholesaling can definitely be fruitful, if you know how to do things the correct way. You and your partner complement each other and when a transaction ends in success, you both end up profiting. Can it get any better than this, I doubt!