Real Estate Co-Wholesale Guide for Beginners
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 the case of wholesaling too and therefore, the term co-wholesaling came into existence. If you are in the 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 of the 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 they may sound though. When you are starting things, the biggest problem that you may face is finding a good enough property to sell to potential buyers. According to the Local Records Office in Bellflower, CA, 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 a 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 causes properly mentioned.
A co-wholesaling agreement should be good enough to protect the 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 the below video and I hope that you will find it to be useful enough.
When you are into wholesaling, you should have a buyers’ list. When you get into a partnership with someone in 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 in 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, and have a list of potential buyers, 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 the future, that’s an awesome thing and you can possibly take your real estate business to the next level with the help of this.
How to Find Co-Wholesalers?
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 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.
Co-Wholesale and Bonding Trust With Other Buyers and Sellers
So, it’s better to charge small at the beginning and create a bond of mutual trust. This ensures further business in 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 it.