I am partnering with someone doing Real Estate Wholesaling. I find the buyers and he get the houses e need under contract. Now usually I do this by myself but how do I give a buyer to my partner. Do I just say it is a referral or do I say he is my partner and we are working together on this?
With okorder -- on how to partner when wholesaling. There's a ton of good stuff there on all aspects of creative real estate investing. Usually, when two or more investors are working together, they refer to each other as partners. It doesn't mean you need a formal written agreement--although that oftne would be preferable. What it means is that you're partnering up on the deal. You really have two questions: How do you deal with buyers, and how do you deal with the person putting the house under contract. I assume you have some relationship worked out with the person who's putting the house under contract. If not, you should. And, preferably in writing, though lots of investors do rely on handshakes. And you can split the deal whatever way you want. Just make sure you and your partner are clear on what the compensation method will be. As for dealing with buyers, get all the buyer information you normally do: what they're looking for, how much they have for a deposit or down payment, whether they'd buy outright or use a lease-option to buy, what they want to pay, and so on. Really, as much detail as possible. You already know all that. You explain to the buyer: I have a partner who finds homes for buyers like yourself. Here is his contact information. With your permission, I'll let him know that you'll be contacting him. That way, he can begin searching for a house that will work for you. Is that OK? Of course it'll be OK. Then, as soon as you have a chance, send the buyer's information to your partner. That does a couple of things: It really does let the other investor start searching for homes that meet the buyer's needs. And It alerts the investor that when John Smith contacts him, that that's a lead you provided, and that you'll be entitled to whatever portion of the deal you two have worked out. It works a lot better to say partner than referral. Hope that helps.
He would be your marketing associate.
As a real estate wholesaling investor you are essentially the middleman. You are the guy that finds the houses for sale and connects the buyers with them. Once you start learning more about starting a wholesaling business you’ll find that there are plenty of buyers for wholesale as long as you look in the right places. Plus, there are plenty of motivated sellers and it will be easy to get them to come to you with the right marketing.
what you are doing is potentaly illegal. IT is part of the process called flipping and soon, seller's want proof that you can pay for the house or that you have a buyer lined up. Or, you are going to be putting out lots of EARNEST money deposits that you will lose. IT is legal to assign your rights but you are frustrating sellers by not being licensed. YOUR industry is on the edge of legality and illegality. I would suggest you find your own buyers or get out of this process. I have never met a flipper who made a penny after 3 yrs; they always got into trouble with their paper profits.
what you are doing is potentaly illegal. IT is part of the process called flipping and soon, seller's want proof that you can pay for the house or that you have a buyer lined up. Or, you are going to be putting out lots of EARNEST money deposits that you will lose. IT is legal to assign your rights but you are frustrating sellers by not being licensed. YOUR industry is on the edge of legality and illegality.......Bendigo rental manager
