What is Co-Wholesaling? (And Why It’s So Awesome)

July 14, 2014 | By | 6 Replies More

Hey guys, I was thinking recently that I’ve been at this REI thing so long, that I sometimes forget the mental barriers that can exist for some people when it comes to the terminology and concepts that I take for granted in my everyday business. When I realized that, I decided it’d be a great idea to use this post to explain one of those topics: Co-Wholesaling.

I hear from a lot of newbies that they are familiar with the term, but aren’t really clear on what it is. So, in today’s post, I’m going to define co-wholesaling in an easy to understand way and explain what it looks like in a real-world situation

And I’m also gonna talk about why it’s so freakin’ awesome and why you should definitely incorporate it into your own business. You may even find that you can focus on it as your primary method for making money in real estate.

Sounds good, right? Let’s dig in…

Okay Class, Let’s Define Co-Wholesaling

Co-Wholesaling is participating on one side of a traditional wholesaling transaction in order to profit.

This differs from a traditional wholesale deal in which you’d work both sides – finding and contracting a property AND lining up a buyer.

In co-wholesaling, you’re just doing one or the other, not both. Think of it this way…

Co-Wholesaling simplifies things because you either find the deal and someone else finds the buyer for you OR you come across an investor who has a deal they want to wholesale and you line up the buyer and get paid for doing that.

You’re basically bringing one half of the transaction to the table, which can go two ways…

Buyer Side: You find the buyer for someone else’s deal/property that they have under contract.

Property/Deal Side: You have a property under contract and someone else has a cash buyer.

Why Co-Wholesaling is so Awesome

One reason is because it greatly simplifies the money-making process. Co-wholesaling offers lower risk and a lower barrier of entry than traditional wholesaling. For instance…

Many times, investors have a deal under contract, but they don’t have a buyer yet. So, you can bring that buyer to the table, get paid, and there’s a ton of stuff that’s taken care of for you.

Like what, you ask? Well, you don’t even have to worry about contracting the property… or negotiating with owners… or putting down earnest money. Sounds nice, huh?

Just bringing the buyer to the table can be an easy way to make a quick profit on a property with pretty much nothing at risk other than your time.

Let’s Make it Tangible: The Rugheimer Deal

Okay, I’d like to bring this home by giving you a real-world example of a co-wholesaling transaction.

This was a deal that I actually had under contract and needed a cash buyer for. It involved a small house on Rugheimer Avenue in Charleston that needed a ton of work.

I blasted the details of the property to my buyer’s list and put the info on my website… and an investor reached out right away who had a cash buyer. A couple weeks later, we closed the deal and split the assignment fee.

It was a great win-win-win: The seller got a fast cash offer; I made a few grand; and my co-wholesaler made a few grand for bringing me the cash buyer. Teamwork, people!

How Much Money can you Really Make Co-Wholesaling?

The potential is surprisingly more than most investors think.

Even those who do co-wholesaling tend to think of it as an afterthought or an add-on to their business, but increasingly more and more savvy investors in the know are discovering how they can build and entire business around co-wholesaling alone and how ridiculously profitable that can be.

Our best example of that is my good buddy, Justin Wilmot, in what he refers to as his 10-Hour Wholesaler Method of investing. Basically, his entire business is built around an extremely simple model of only co-wholesaling, which lets him work an average of just 10 hours a week so he can surf to his heart’s content. (That’s him in that cool pic.)

If you wanna discover more about Justin’s co-wholesaling methods, you can learn more about him HERE.

USE patrick-signature-image-1-169x300What’s Your Story?

Have you ever co-wholesaled a deal? Or is this new to you? If you have any other questions, fire away in the comments section below.


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Category: Real Estate Investment Buying Strategies, Real Estate Investment Selling Strategies, Tips and Tricks

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10 Hour Wholesaler

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  1. jp moses says:

    You’re totally right about forgetting how many people don’t understand this stuff. Co-wholesaling is so simple… the easiest, least risky way to get into the wholesaling arena really… but many investors don’t really get it.

    L-O-V-E Justin’s 10 Hour Wholesaler by the way… been through the whole thing twice. It’s not that long, but solid and squarely on mark. Highly recommended.

  2. Patrick Riddle says:

    Yep jp, it’s especially simple when you just focus on the buyer sider. Glad to hear you love Justin’s training!

    – Patrick

  3. Yes Patrick, I have a slew of buyers! So co-wholesaling is right up my alley! I’m looking forward to incorporating it in my business!

  4. Patrick Riddle says:

    Sounds great Charles!

    – Patrick

  5. Wayne Jewell says:

    Hi patrick,

    love the co-wholesale strategy, but exactly how do you get paid? Is there an agreement that you sign between the other wholesaler?

    • Patrick Riddle says:

      The way Justin closes these types of deals now is by doing a ‘double assignment.’ This allows you to stay ‘principal’ in the deal… so that it’s never considered brokering without a license. As far as how much you get paid is negotiable with the wholesaler.

      – Patrick