I want to talk about Co-Wholesaling and how you can use this to make more money in your business. First, let’s talk about Co-Wholesaling and explain its purpose. So, what is it? Co-Wholesaling is exactly like it sounds: finding a wholesale deal and then selling that wholesale deal with another wholesaler. Two dealers moving the product together.
Now, why might someone Co-Wholesale? Generally, it is because you have a house that doesn’t fit your standard wholesale product and you don’t necessarily have a buyer for that wholesale deal. So, you use your local REI network to find a wholesaler who can help you move the deal to a buyer you haven’t dealt with before.
If you’re brand new, this may be a good way to get your foot in the door. This is also another way to establish a buyer’s list you can trust. Or, if you have a specialty property that doesn’t work for the types of buyers you generally work with, you can use your Co-Wholesaler’s contact to move the deal to the right buyer. It is all about knowing your end buyer and getting the product into the right hands.
For example, let’s say you lock up a large lot with a little ranch home on the property. You know the property is a knock-down. The entry-level renovators you generally deal with aren’t going to be interested in this property. So, maybe you network with another wholesaler, who puts you in contact with an Infill builder who is looking to parcel the lots and build two or more skinny homes. The Infill Builder will pay top dollar, and you and your Co-Wholesaler move the product for bigger cuts. Everyone wins.
Look at what type of house you are trying to wholesale and who your buyer is for your product. Also, get to know other buyers out there and get to know your competition. You can make money with them!