This entry treats wholesaling as a service performed for others: sourcing, negotiating, and contracting deals on behalf of investor clients, or running wholesaling operations as a service, rather than wholesaling on one's own account.
Log in to followClosed on a small duplex six weeks ago that I did not find myself. Someone else found it, negotiated it, and I paid him $6,500 at closing for the service. I was nervous about the…
Been building the cost sheet for a first rental and the line that keeps breaking it is a $7,000 sourcing fee. My actual closing costs on a $150k house pencil around $4,200 in my m…
Been working toward doing acquisitions work for other people and got as far as a real conversation with an out of state buyer. He asked two things I wasn't ready for: do I carry E…
I move slowly on purpose, so paying someone to speed up the front end seemed like the one place spending money made sense. It didn't work and the reason is in the agreement I sign…
Still figuring out where to put money and I've been talking to two people who source for out of area buyers. They work completely differently and I want to understand which one I'…
I've been asked twice this month if I "do wholesaling" and both times I said no, then spent five minutes explaining that I get paid a flat fee by an owner to find and lock up a pr…
I'm mostly reading about notes so property paper is new to me, but a friend forwarded a sourcing agreement to see if I could follow it and one clause stopped me. It says the sourc…
Running two shapes side by side this year and I can't get a clean answer on which one I should standardize. Shape A: I sign the purchase agreement with the seller in my own name o…
I've been getting emails from someone who says he finds houses for out of town buyers. He sent me one this week. $150,000 house, he says it rents for $1,450, and his fee is $8,000…
Trying to get the terms straight before I underwrite anything for a client. Say I put a house under contract at 150, assign it to my buyer at 165, and I also have a sourcing agree…
If I'm going to find houses for other people's money, I want to know what the overhead actually is before I quote anyone a fee. What I think I need: some kind of list pulling soft…
I've been assigning on my own account for three years and the spread is getting squeezed, so I'm moving toward getting paid for the sourcing itself. One client, a small fund buyin…
I do HVAC work and one of my regular customers owns maybe fifteen rentals. He said he'd pay me $7,000 a house if I brought him ones he ended up buying, since I'm in basements all…
I'm not buying my first rental through this, I'm reading their paperwork because a friend asked me to and now I can't stop. The service pitches out-of-area buyers. Terms: $2,500 o…
A buy-and-hold client wants my small acquisitions team on a per-house fee, where he signs the purchase contract with the seller directly and we get paid for the finding and the ne…
I've done six assignments. The way it works for me now is I get a house under contract, I market it, whoever pays the most gets the assignment, I collect the fee at closing. Simpl…
Term sheet in front of me from a small fund buying rentals. Structure: $8,000 per closed acquisition, target 25 a year, I'm exclusive to them in three counties, no retainer, no re…
We manage 140 doors across roughly 60 owners. Eleven of them have asked in the last year some version of "find me another one." Right now I hand that to a brokerage we like and ge…
One of the private lenders I've been talking to about how his money moves mentioned in passing that two of his borrowers pay a wholesaler a monthly retainer to hunt for them inste…
Engaged a sourcing service as a buyer client. Their agreement was better than most. Fee $9,000 at closing, buy box defined, tail limited to ninety days, and a sentence saying the…