So, a great question came into my podcast hotline—I actually get this question a lot—so I want to bring it here to you fine folks too…
You might know that a big part of my investing business involves partnering with other wholesalers to do deals. I do this through my own program, actually, called the Automated Wholesaling System.
But since we’re in a partnership… whose name goes on the contract with the seller? My name or the local wholesaler’s name?
Well, to answer that, here’s what the local wholesaler I partner with handles:
- They get the property under contract
- The contract with the seller is in their name
- They deal with the funding (assignment or double close or hard money)
- They work with the title company to close
Sounds pretty good, right?
So, you might be wondering—the local wholesaler is doing A LOT of the work. Where do you come in, Joe?
Well, my part of the partnership is the marketing and then screening the calls when leads come in. I then pass along those prescreened leads to the boots-on-the-ground wholesaler and he/she takes it from there.
By now, you can probably see why this is such an awesome way to invest.
But do you want to know 1 big reason why I LOVE this strategy?
Because I HATE talking with sellers.
I can do it, I’m just not great at it and I don’t like it. So, I partner with skilled people who are good at this particular aspect of the investing game.
Now, want to know yet another big reason I love this strategy?
Because when you meet with a seller in person and build rapport—you will get a bigger discount, which means a sweeter deal.
So when you hand over leads to your wholesaler partner—the person who’s going to be negotiating with the sellers face to face—it’s super important that you’re giving your partners exactly what they need: quality leads that have a high probability of turning into deals.
Doing that creates a true team atmosphere with trust on both sides. And, you are both happy splitting the profits 50/50.
So…
What’s to prevent the local wholesaler from going rogue and cutting me out? Do I have a formal agreement with my wholesaler partners about our arrangement that protects me?
Not exactly…
I do have emails we’ve both sent that state who is responsible for what tasks and correspondence that has us both agreeing to it.
So, I have something in writing, yes, just not a formal contract between the two of us.
And, my last critical point in doing business this way is that every single thing has to be tracked in Podio. All my local wholesalers input info in Podio, so we each know where the deal is in the process and the details—including the contract with the seller and the contract with the end buyer that has the sell/buy numbers.
You’ve got to make sure everything is open, honest and transparent. That’s smart business.
And remember, trust and the relationship with your local wholesalers are keys in a successful wholesaling partnership.
I encourage you to find skilled, trustworthy wholesalers to partner with today.
