How I Closed My First Wholesale Deal Without Finding It Myself

What I do a lot, if you're new to this industry, basically I do what's called JVing, and that's helping another wholesaler that has a deal under contract find a buyer. Now, what does this look like? Well, basically you would look at deals that other wholesalers have and you'd say, hmm, I think I have some buyers that would be interested, or hey, this is a good deal, let me bring it to some people that I know that would want to buy it. Then you bring the deal back to the wholesaler and you say, hey, I have a buyer, we can either split this, the assignment fee 50/50 above what you have it under contract for, I can add my fee on top, doesn't matter, you can negotiate anything you want.

You want.

And then if the wholesaler accepts it, then you just write up some paperwork or they just pay you. Depends what you want to do, if you trust them or not. And you don't, you don't always have to do paperwork. I don't do paperwork a lot with other wholesalers. They just pay me because we've done several deals together. So what does the conversation look like? I'm about to show you right here in a video where I recorded myself talking to another wholesaler. She had a deal in Provo, Utah, where she needed help finding a buyer. She had somebody and I navigated that conversation talking with her about what we can do. You know, is it worth my time? Is, you know, what's the situation? This is how you talk with a wholesaler. You're just open and transparent and you try to find out what's going on. So let's dive into this call and see what you can learn from it and how you can negotiate and navigate the situation with wholesalers when you're trying to bring buyers to their deals. Let's dive in.

Hey Amber, how's it going? Good.

How are you?

Doing really good. So I wanted to get back to you. I have a buyer that's running their numbers and they're going to get back to me. We're just waiting. You said that you already have someone that's committed and they can close Monday.

Yeah.

Okay.

Of course, if we can close sooner or have something that's super concrete, like, then I— Yeah, I'm just like, I feel bad for the seller in this situation. I don't want to drag them along. I want it to close, you know?

Of course. Yeah. So I'm curious, just because obviously I don't want to bring you an offer that's not better than the one you have or wouldn't make sense to work with me. Are they— what price are they doing? So Obviously I know, you know, I got to do better or whatever.

They're at $350,000.

Okay, so they're at $350,000. So you have it at $335,000, is that right?

Yeah.

So is that— that's a 25K assignment fee, right?

So we have it at $335,000, so it's 15%.

Oh, sorry, I did my math wrong. 15%.

Yeah.

And then I have like a partner in it, so we're just splitting it.

Okay.

Kind of tag-teamed this one.

Okay.

So yeah, we're just splitting it.

Okay, so if I brought a buyer, I would obviously have to come in higher than $350,000, right? In order for it to make sense.

Yeah, or, or, you know, they could close sooner. But yeah, they could come in a little higher than $350,000. And then if you wanted to add whatever, like if you want to just take a, like a bird dog fee or whatever, you add that on.

Yeah, yeah. Okay.

But I think the numbers are there, honestly, like You know, it's close. It's close to like a 77. I think that the ARV could push, like there's comps that support like high 5s, even 6s, but this one is on a main road. It's not a busy main road, but it is a more main road than most of the comps are on.

Yeah. So my buyers, you know, every buyer is going to try and beat you up and a lot of them are like, oh, you know, I just don't see the comp at $570,000. So it just really depends who's looking.

Totally.

My buyer— and I get it because I'm conservative, like, when I look for myself, of course, especially in Provo right now because the prices have kind of changed a lot recently.

Yeah, totally.

So I'll let you know. Um, I'll probably— I should let you know by the end of the day. They're just waiting, and if I can't do it, then obviously I'm in. $350,000? Yeah, go with that. That's great.

Yeah, just let me know, and then if it, you know, if it doesn't work out this time, it's good to just have this relationship. Of course, you know, we always are bringing in deals. I probably really should buckle down and invest and build out my buyers list and have this whole operation.

But like, I, I kind of like having my deals, um, I totally get that.

It's worth it. Like, for me, it's honestly worth it.

Um, yeah, it's something you don't have to even think about, you know, you don't have to worry about it. Well, exactly.

When I have so much going on, it's just like, oh, it's kind of nice to know that somebody else is like assigning it.

I totally get it. Yeah, that's kind of I felt when I was new. I was like, this is great, but then eventually, you know, you move on. But yeah, I'm kind of do the same thing. I have a giant list. I don't really blast out deals. I just reach out to my key top buyers and, um, you know, kind of get their feedback. So I've reached out, got some feedback on some that just aren't interested or the numbers don't make sense, but I'm waiting on one. Uh, so yeah, I will keep you posted. And if this one doesn't work, yeah, let's— many more. Anything you send me, I can at least get you an offer on or tell you yes or no.

Okay, that sounds great. Cool.

All right, well, I will. All right, Amber, appreciate it. I'll get back to you as soon as I hear back.

All right, thanks, Nathan.

Yeah, bye. That's a wholesaler that sent me a deal, and I'm sending it to one of my buyers, see if we can get a deal done. They're running their numbers right now, so let's see if we can get a deal done.

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