For real estate investing women, it’s critical to understand all of your options in order to build a strong real estate portfolio. Co-wholesaling is one option to add to your list of real estate investing strategies. The premise with co-wholesaling is to build effective partnerships, which allow you to close deals more quickly.
In fact, co-wholesaling is so quick and easy that I often refer to it as my personal ATM. Wholesaling is a great way to make money without having cash on hand, and it’s even better with a partner. Be smart with your real estate investment strategy by diversifying your portfolio with deals like co-wholesaling.
What is Co-Wholesaling?
Co-wholesaling is a real estate investment strategy where you form a joint venture with another wholesaler. The deal uses the same process as with other wholesaling investments. The primary difference is you work with a partner and split the profits evenly.
As a review, wholesaling is when a real estate investor creates a contract with a seller and then works to find a buyer to take over the contract. The investor never takes possession of the property. The job of the investor is to locate a buyer and then transfer the contract to that buyer all within a four to six-week window of time. The investor makes a profit by finding a buyer at a higher price than the amount contracted with the seller.
For co-wholesaling, one investor usually locates the property and the other investor locates a buyer. These roles can change for each deal. The key is that you’re splitting the work and expanding your reach. The team effort helps make the process move more quickly.
Benefits of Co-Wholesaling
Co-wholesaling is a win-win opportunity. Actually, co-wholesaling benefits all parties involved, including the seller, buyer and both real estate investors. Like with all real estate investment deals, a contract is important to define the roles and details for each transaction.
1 – The process with co-wholesaling moves more quickly because your able to tap into the buyer’s list of your partner real estate investor.
2 – Because you’re forming a partnership, your risks are lower.
3- Co-wholesaling allows you to establish a larger base of buyers, which creates more opportunities.
4 – Working with another real estate investor creates a larger inventory of properties to provide to potential buyers.
As you can see, co-wholesaling is an effective way to make a profit quickly. The burden of work is less because you’re working in conjunction with a partner.
The Process for Co-Wholesaling
Co-wholesaling isn’t complicated, especially if you’ve already found success with wholesaling. The specifics of the deal work the same. The main difference is that you’ll split the profit, but you’ll also have a partner to help the process flow more quickly.
1 – Start by researching other wholesalers. Look for ads, on Craigslist, search the internet and tap into your portfolio.
2 – Once you’ve created a list of potential co-wholesaling partners, reach out to them to build a connection. Talk to each investor to determine if they are a good fit. Integrity, trustworthiness and a proven track record are all important in a partner.
3 – Create a solid contract to define the specifics of your partnership. The contract should include a 50/50 profit split. It’s very important to put this in writing.
4 – Work together to identify properties and buyers according to the normal real estate wholesaling process.
Women Helping Women Find Success
Today’s women understand that we’re capable of making money in non-traditional ways. One of those ways in with a real estate investment business. As you build your portfolio and grow your reach, consider how you can partner with other women to find even more success.
Co-wholesaling provides a great opportunity for women to work together to use your resources for a mutual benefit. When you act as a team, you’ll have more reach with both buyers and properties.
The key is to find a partner you can trust. This is where, as women, our intuition is priceless. Trust your gut. Build an alliance with someone you respect that treats you like a peer. In a co-wholesaling arrangement, each investor should openly communicate all information about the deal. The goal is to work together make money quickly.
Start with a Solid Foundation
The foundation for real estate success is knowledge. It will be easier to find partners if you understand the real estate investing business. Invest in educational resources to help pave your path to success. Look for quality information from proven sources, including eBooks, webinars, videos, blogs and workshops.
To get started on your journey to real estate investing success, download the Real Estate Investing for Women eBook. It includes expert tips and industry knowledge to help build your real estate investing business.