In the last post we discussed the traditional ways wholesalers use to find motivated sellers and cash buyers. But as a real estate wholesaler, there is a better way to find properties and buyers. And it’s a strategy used by the most elite investors within their “inner circles”.
With Joint Venture Wholesaling, you can concentrate on what you’re good at (either getting properties under contract or building relationships with buyers) and use another wholesaler’s inventory for the other piece of the puzzle. Let’s face it. Some of us are better at one or the other. Or better yet, some of us might be good at both but really only enjoy one or the other. And none of us got into this industry to do something we didn’t enjoy. And what about those of you that see the value of concentrating on just one side of the coin allowing you to increase the quantity of deals you close in shorter periods of time?
If you are able to put all your energy into one piece of the puzzle without worrying about the other piece, you can multiply the number of leads you generate on one side while tapping into the inventory of another wholesaler for the other side. If done right, this turns 1 deal into 10 deals in the same amount of time.
Now, you want to make sure you sign an iron clad JV contract that protects you both. And then whatever terms you agreed to, whether 50/50, a flat fee, or creative terms, you split the wholesaling net profit with the other wholesaler accordingly. This way you spend less time finding the other piece on your own and more time getting deals done!
DOING IT THE RIGHT WAY
Now, there’s a right way and a wrong way to Co-Wholesale or JV. To do it the RIGHT way, you want to make sure your JV contract assigns a portion of the property contract interest to the wholesaler bringing the buyer to the table. Otherwise the wholesaler with the buyer could be considered a broker which you must be licensed to do in most states.
You also want to avoid any confusion and make sure that you do not cross sides. This means the wholesaler with the buyer should be the ONLY one talking to the buyer. And the wholesaler with the property contract should be the only one talking to the seller. Trust us. This will save you a world of headache in the long run.
OK, so there are several ways you can split the wholesaling net profit. You can split it down the middle (50/50), charge a flat fee for what you bring to the table, or come up with your own set of creative terms. Whatever you choose, make sure the other party is 100% on board with the terms. That’s why finding the RIGHT JV partners is so important.
So now you have a deeper understanding about Joint Venture Wholesaling which is important because it is extremely important to avoid all the mistakes that others overlook. The key to doing this well is to do a lot of networking to find other wholesalers that 1.) WANT to work with YOU and 2.) have the exact properties or buyers you need for YOUR properties or buyers.
But as you know networking takes time. And time is money. And often, even after spending all that time networking, it can still be difficult to find the right people with which to work.
Fortunately for you The Joint Venture Wholesaling Matchmaker is your key!
The Joint Venture Wholesaling Matchmaker uses a proprietary matching algorithm to automatically match in-network wholesalers for Joint Venture deals based on their inventory. These are not matches based on "potential". These are based on true active current inventory. So you’re matched to get working on closing deals right away.
As an added protection, when you’re creating your match portfolio, you DO NOT disclose buyer names or contact info, or property address info. So your inventory is safe. You can even take advantage of the optional FCRA compliant background check feature if you so choose.
AND, members also get access to FREE contract resources, in addition to other goodies that quite frankly everybody should have in their wholesaling business.