If you are just starting out in the Real Estate investing arena, you may have put your signs up, check craigslist, and FSBO.com for deals in your area. Chances are you may even have found a deal that will work for you based on the magic formula they gave you to use in your business. The problem is then finding a buyer for your deals.
When you are first starting out, your buyers list may be small, or non-existent. You have probably done what they told you and called all the other investors you find on sites like craigslist and asked if they would like you to send over your deals when you get them, but mostly what you have found is other wholesalers, and you have grown slightly frustrated with the system.
What a lot of the courses don’t really teach you, or you don’t take seriously is the ability to co-wholesale with these other investors. If you have a great property but no list, it would behoove you to find out whom the biggest wholesalers in the area are and get them to send your properties out to their list. Generally the way it will work is that you agree on some split of the wholesale fee. 50% is not unreasonable!
A lot of new investors miss this boat, simply because they are not willing to split the wholesale fees. Truth be told, getting a property sold is better than not getting it sold, even if you only get half of what you anticipated. One of my good investor friends once said, “a few thousand dollars is much better than no thousand dollars.” I can’t agree with him more. Wholesaling is more a volume business; you are leaving the big spread on the table for your end buyer, so it only makes sense for you to sell as many properties as fast as possible.
Moral of the story is, reach out to your fellow wholesalers. Don’t look at them as your competition, but as partners. Not every other investor will be willing to work with you, but that is a short-sighted view. If you ever want your business to grow to the point where you are filthy rich, turning more deals than you thought was possible in any given month, you are going to have to get some help, finding and selling properties. You might as well start with that idea from the beginning.
As I write this article, I am gearing up to have a semi-regular lunch with another investor in town who I used to view as the competition. Now I consider him a part of my money making machine. We share deals, we work together to move more properties and make both of our businesses more profitable.
Good luck and I will talk to you soon.
The guy that wants to make you rich,
Jake Wiley
