Co-Wholesaling: The 7 Step System to Fast Wholesaling
Wholesaling is an easy and quick way to break into real estate investing, and co-wholesaling offers a way to make the path even easier. Even for experienced real estate investors, wholesaling offers a way to make money fast. However, when you are starting your real estate investing business, working with others can help grow your business quicker and minimize your need for joint ventures over time.
Co-wholesaling is when you form a joint venture with another wholesaler to maximum your reach. The benefits of co-wholesaling are a faster process, larger buyer base and larger inventory of properties. Working together benefits each party. Usually in a co-wholesaling venture, one party brings the buyer and the other brings the property. This helps speed the process which minimizes risks.
The 7 Steps To Co-Wholesaling Success
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The 7 Step System to Fast Wholesaling:
1 – Find Possible Wholesalers
The first step in the co-wholesaling system is to find other possible wholesalers. Thanks to modern technology, the internet makes it easier than ever to locate other wholesalers. You can start by Googling “wholesaler” plus your city. Other ways include Craigslist, Blinds Ads, and Bandit Signs. Also, look for trigger words in your search. Another way to locate a wholesaler is through your real estate network.
2 – Qualify for a Good Fit
Not every wholesaler you identify will be a good fit for a solid joint venture. Qualify your leads before you agree to work together. You want to ensure that your co-wholesaling partner is ethical and honest. Ask for references and follow up with those references. Also, define roles before you start the co-wholesaling process.
3 – Set Boundaries
Remember, the long-term goal is to manage wholesaling investments without a partner. Setting boundaries is important to protect your reputation and your network. Secure your position within the venture from the start. Also, establish ground rules with your partner. Proper boundaries will help protect you both legally and financially.
4 – Who is the Seller?
Before you agree to a co-wholesaling relationship for a deal, determine what has been done so far including the timeline. Make sure you know what you are getting involved in before you make a commitment.
5 – Sign a Co-Wholesaling Agreement
A co-wholesaling agreement is critical to protect your interest and establish roles. Typically, there are two types of agreements. First, if you represent the buyer, the other party controls the paperwork. Second, if you represent the seller, then you have control of the paperwork.
6 – Locate Cash Buyers or Locate the Seller (Find Properties)
As stated above, you will likely locate either the buyer or the property. Determine from the start which role you will play in the co-wholesaling process. Once the agreement is signed, then you need to get to work on your part of the deal.
7 – Sales Contract
Once each party completes their action of finding the buyer or the seller, then it’s time to complete the sales contract. This is the finalization of the co-wholesaling process. Once the deal is completed you will get your profits and add to your real estate investing portfolio.