How to Wholesale Real Estate: How to Structure JV Deals With Other Wholesalers

Greetings folks- I’ve got another Reader Mail video for ya!

In this episode, I answer a question from a beginning wholesaler who wants to know how to structure the paperwork in a JV deal with another wholesaler.

Check it out right here:



Enjoy, and have an awesome weekend!


Despite the fact that I look like I’m on drugs in the YouTube freeze frame, I’m really not.
I swear.

Author: Steph Davis

  1. On January 25, 2013 at 5:13pm, Foster said...

    Your email says, “The video is private.” Where do I go from here?

  2. On January 25, 2013 at 5:26pm, donny said...

    Your video says, “This video is private” and cannot be watched. Or is this just me?

  3. On January 25, 2013 at 5:28pm, Stephani said...

    Crap! Sorry about that, guys! Try it now and let me know if you can watch.

    Maybe I am on drugs after all…


  4. On January 25, 2013 at 5:49pm, Al Elliott said...

    i to am a wholesaler in chicago and i wouldn’t recommend pushing another wholesaler’s deal if you don’t trust them, there are a lot of scammy wholesalers in chicago and now Illinois is heavily regulated unlicensed dealers you have to watch out for that because structuring it the wrong way is Illegal in chicago IL, as far working with other wholesalers a lot a personal feelings can get in the way some wholesalers might not want you on the deal any more they find there own buyer, you may have a buyer but cause so many other investors looked at the property the original wholesaler my take back the key and now your buyer can’t get in. I would not recommend brokering or marketing someone else’s deal if you don’t have many for marketing get take cardboard box paint them yellow right out we buy houses i’ve done that go to for bandit signs right in Woodale IL you can get 25 signs for 38$ bucks real cheap if you don’t have money for marketing get some money for marketing your own deal cause in the end you won’t get screwed and you’ll learn more

    • On January 25, 2013 at 6:08pm, Stephani said...

      Thanks for the input, Al!

      I agree that you should be careful working deals with other wholesalers, especially if you don’t know them. I do still think it’s a good way to get your foot in the door and learn your market, build your buyers list, etc. As long as the paperwork is structured correctly (run it by an attorney first), I think you’ll be fine.

      Take care,

  5. On January 25, 2013 at 6:57pm, Audra said...

    Hi Steph,

    I’ve done 3 of these deals now and made just under $6.000. It’s not a whole lot of money but I have gotten an education on what sells and what doesn’t and have also built up quite a few buyers.

    We do two assignments on deals with homeowners and on REO properties we do two purchase and sale contracts and then an assignment to my buyer.

    Thanks for the video and all the awesome information you’ve been providing over the years!


    • On January 25, 2013 at 7:54pm, Stephani said...

      Congrats on the deals, Audra!

      Would love to feature you as a success story if you’re up for it. Check your emails…


  6. On January 25, 2013 at 7:25pm, Aracely said...

    Steph, you always explain everything in simple steps. I appreciate that. But, I have a question about the way you explained this. In the end, you say “the buyer would come in with his $87,000; the seller gets his $80,000, the first wholesaler will get his $5000. and then you will get the $2000.” That, I understood, but my problem has been in the numbers when it comes to paying the holding and closing costs and transactional lending fee? Who pays for these? Could I include it in the sellers costs to have a clean $2000-5000 as profit?

    • On January 25, 2013 at 7:50pm, Stephani said...

      Hi Aracely,

      If you’re doing an assignment of contract, there is no need for transactional funding. You simply assign the contract to the end buyer, and they come to closing with the cash. There will be closing fees involved that either the buyer or the seller (or both, depending on how the contract is written up), will have to pay, but that doesn’t effect your assignment fee.

      Transactional funding is used on REO and short sale deals where you can’t assign the contract and actually have to close on the deal yourself (hence the need for funding) and then resell to your end buyer.

      Make sense?

  7. On January 25, 2013 at 8:53pm, Marquida said...

    Hey Steph. I love watching ur videos and seeing another female making waves in this industry. Here in my market, I make it very simple to ensure that I always get paid. I learned the hard way as well. I sign a JV agreement with the other wholesaler, get the assignment done in the other wholesalers company name as to not make the end buyer feel ripped off, and then send all those to the title company. The title agent still cuts the separate checks for each of us on the deal and only the other wholesale is required to be on the hud1. N then i dont have to show up to closing because my $$$ is wired to me!!!! Thats the part I love!!! Hope ur subscribers are able to gain another option from this. I always like to have a choice! Enjoy your weekend!!

    • On January 28, 2013 at 12:31pm, Stephani said...

      Hi Marquida,

      Thanks for sharing your strategy with us!

      Do you mind telling everyone what the JV agreement says, or where you got it?

      Thanks! :)

      • On January 28, 2013 at 3:17pm, Marquida said...

        A JV agreement is one in which both wholesalers put in writing the amounts of the split on the wholesaling fee. Each entity is named and the amount is given. It is signed off by all parties. It is the same concept as a sub-fee agreement which may be used in larger deals. It was a document that my real estate attorney approved and its very straight-forward and simple. One page. I’m sure one can be found online in many of the REIA websites or someone in your network will probably have one. REIA websites are a great resource to see what is being used in your market.

  8. On January 26, 2013 at 8:40am, Alford said...

    the problem is that jv with other wholesalers is considered illegal now in Chicago Illinois there is a legislature that was passed monitoring dealers that are unlicensed a lot of wholesalers that have been caught doing this were fined 25k$ a lot of title companies and attorneys are leary when they see these types of transactions so although this technique may have worked in the passed, in Illinois and Chicago specifically this type of wholesaling shouldn’t be practiced

    • On January 28, 2013 at 12:33pm, Stephani said...

      Interesting. Do you happen to have a link to the law/bill that was passed or any info about it?
      I’d be curious to see what it says.

      Thanks for the info!


  9. On January 26, 2013 at 5:05pm, Vincent said...

    Great information “Steph” so now I know how to do the same and my ears are always here to listen and learn.


    • On January 28, 2013 at 12:33pm, Stephani said...

      You’re welcome! :)

  10. On January 26, 2013 at 9:22pm, donna said...

    k i got all that about 80,000 then 85K then 87K but shouldnt jose be getting a split of the 5,000
    from his JV partner also? what happens there?

    • On January 28, 2013 at 12:35pm, Stephani said...

      Hi Donna,

      In this scenario, no. The wholesaler was looking for a 5k profit, and that’s what he got. It’s all negotiable, but in this case, the other wholesaler was getting 5k, and Jose 2k.

      Hope that helps,

  11. On January 28, 2013 at 3:46pm, donna said...

    thanks! another question..i live in new jersey and our tax info is not on line (at least i do not see it) unless not looking up correct info. I am looking to find the names of owners of vacant homes.
    could you tell me what sites to do research on so i have them on hand, pls?

  12. On January 28, 2013 at 7:36pm, Siobhan said...

    Hi Steph,
    I am a beginning wholesaler in the Washington DC area and I have 3 questions:
    1) Do you know if DC is a good market to wholesale? Many people tell me that it is not; do you have any insight on this?
    2) As a new wholesaler who has not done any deals should I mention this when speaking to a potential buyer for my buyers list and or sellers? I don’t want to show I am a complete novice but I don’t want to be untruthful either.
    3) Once you have “locked up” an assignment deal should you have a real estate attorney review the contract? I have been told by other investors not to let the title company handle an assignment of contract? What are your thoughts on this?

    • On January 30, 2013 at 1:25am, Marquida said...

      I’m in the DMV as well. You are in a great Market!!! Attended your local reia meeting and meet up with other investors in your area to help you out and find out what buyers are looking for. I have buyers in that market and know of other investors, wholesalers, and rehabbers there as well that I’ve worked with, as well as in PG County. I have no problem doing a JV deal and I could assist you as well to get you started. You can email me at [email protected] with your information and we can connect. My grandmother always said, “reach one and teach one.” She was an English teacher and principal until she retired. The power of knowledge and networking is priceless. You are in a great industry and as a single mom, it has been and continues to be GREAT!!!!

    • On February 06, 2013 at 9:54am, Stephani said...

      Hi Siobhan,

      I don’t have any knowledge of the D.C. market, but if there are buyers buying, it’s a good place to wholesale. I know of several investors and wholesalers in that area who do quite well.

      As far as telling your buyers that you’re new- I don’t think it really matters. As long as you are bringing them great deals, they won’t care if you’ve been around 10 years or 10 days.

      I would have an atty review your contracts before you use them.
      I use a title company to handle all of my closings (both assignments and double closings). I would find some active wholesalers in your market and ask them who they use to close their deals. Referrals are the best way to go in my opinion.

      Hope that helps,

  13. On January 31, 2013 at 1:23am, donna said...

    Thanks,Steph that info is just what i need!!! this will make it soooo much easier when i drive around and find homes…i hate to have to keep calling the tax accessor bcus it is such a small township and she does not like to answer questions she is suppose to never mind my extra little questions….thank you, thank you, thank you.

    ps are any of your buyers interested in new jersey or new york state deals? let me know
    maybe you and i can co-wholesale or i will just find for you!!!!

    • On February 06, 2013 at 9:32am, Stephani said...

      Hi Donna,

      Glad the info helped!

      I don’t have any buyers looking for deals in your area, but will let you know if I run across anyone who is.

      Take care,

  14. On February 02, 2013 at 7:08am, Allan Hyde said...

    Hi, The information you have provided is invaluable especially to someone new to the business. My question is on the property side. What do you use as reference to identify if a property you’re interested in or are researching is really a deal and worthy of getting into?

    • On February 06, 2013 at 9:34am, Stephani said...

      Hi Allan,

      I usually line up buyers first and find out exactly what they’re looking for in a deal. I also look at the recent “investor comps” (the low comps in the area), to get an idea of what investors are paying for properties in a certain neighborhood. It takes some time, but after awhile it becomes really easy to identify what is or isn’t a deal.

      Hope that helps,

  15. On February 03, 2013 at 9:17am, Doni said...

    Steph.In your Ninja course do you cover doing real estate wih “finders fees” and doing real estate with “assignments” or is that one and the same? Thank you, Doni

    • On February 06, 2013 at 9:37am, Stephani said...

      Hi Doni,

      The assignment contract comes with the course as well as video instructions on how to fill it out. There’s also a bonus video training module where I walk you through the steps involved in assignment deals, REO wholesale deals, and JV deals with other wholesalers.

      Take care,

  16. On February 04, 2013 at 6:17am, Allen said...

    Hey Steph, I Have A Question About Your eBook Flip This REO! I Was Wonder Cause I Live In Maryland Will It help Me The DMV Area or Is It Just For The Florida Area?

    • On February 06, 2013 at 9:39am, Stephani said...

      Hi Allen,

      It is not specific to FL- the info applies anywhere in the US, although obviously each market will have differences.

      Take care,

  17. On February 04, 2013 at 6:03pm, donna said...

    steph hi i cannot remember which contract it is but i cannot get it on my mac..i hve to go back and
    see which one…now that i think abt it i think itis the one you have special directions for to get it and i still cannot. pls advise

    ps i have other questions i would like to send to you where should i send them to ?

    • On February 06, 2013 at 9:41am, Stephani said...

      Hi Donna,

      You can get the contracts on this site. There’s a box that says “free wholesaling contracts” on the right side. Put in your email address, and you’ll get a link to access the contracts.

      This is the best place to ask questions. Or on my Facebook page:

      Take care,

  18. On February 05, 2013 at 3:03pm, George said...

    Steph, I really admire you! I think you are honest and very helpful in the world of Real Estate.
    I have a question for you… Is “Susan Lassiter-Lyons” the real deal? and Should I do her system or Wholesaling? I have to pick one or the other. I was gonna try and do Hud homes. But I saw Susan’s info from your email and it sounds almost to good to be true.

    • On February 06, 2013 at 9:49am, Stephani said...

      Hi George,

      Susan is a good friend of mine (and former business partner), and yes, she is the real deal. I can’t say enough about the quality of her info, as well as her customer service.

      Any of the strategies you mention will work, it’s just a matter of picking one and then sticking with it through the learning curve. None of the strategies are going to make you an overnight millionaire, which is what a lot of people are looking for. It takes hard work, determination, persistence, and patience. If you’re willing to put in the effort, you will be successful.

      Hope that helps,

  19. On February 06, 2013 at 11:12am, Jared Christiansen said...

    I’m so proud of you Steph! We’ve come a long way baby!

    My question is this: Have you had any issues with local realtors or title companies trying to shut you down?

    As you know, I’m a realtor in Fort Wayne, Indiana. Last year we had a licensed agent try his hand at wholesaling.

    He would make tons of low offers on foreclosures, get some under contract, the REO agent would change the status to pending, and then he would turn around and re-list at a higher price. Once he got offers at the higher price, he would double close.

    It wasn’t long before folks caught on and shut him down. He wasn’t stopped because of the wholesalling part, it was that he was mis-advertising these homes as his listings. That’s a violation of the code of ethics (Gasp! Yes, we go by a code of ethics!).

    Have you had issues? Just curious.

    I’m definitely not interested in becoming a wholesaler myself as I do very well and enjoy being a realtor, just wanted to get your thoughts.

    Shoot me a text if you end up using this in one of your videos. Keep kickin that ass girl!

    • On February 07, 2013 at 2:49pm, Stephani said...

      Jared! How the heck are ya?

      I have never run into any problems like that, but then I have never put my listings up on the MLS, and have never seen anyone else do it, either. I imagine if someone tried doing so around here, they would wind up in a heap of trouble like the person in your market.

      I’ve always just advertised the deals to my buyers list, put signs out, Craigslist, etc, and have never had any issues.

      Nice to see ya over here, and thanks for stopping by to say hi. :)

  20. On February 07, 2013 at 6:46pm, Julie Broad said...

    Hey Steph! Super good to see you on video again!! Miss ya gal! By the way – my single biggest complaint about YouTube is it’s ability to give me 3 absolutely hideous freeze frame choices to pick from. Never fails.

    • On February 07, 2013 at 9:17pm, Stephani said...

      JULIE!!!!! Hey lady- nice to “see” you!

      Glad I’m not the only one with the YouTube freeze frame issue. I guess I’ve kinda gotten used to it over the years…

      I hope all is well with you, Jules. I miss you!

  21. On February 08, 2013 at 1:22pm, Doni said...

    Steph: Do you cover buying and selling HUD homes or properties? if you don’t do you know someone who does? Doni

  22. On February 12, 2013 at 10:20pm, Till said...

    Hi Steph,

    I was wondering if your course Flip This Reo goes into how to get around a bank that puts into their contract that the property can’t be sold before a 90 day period is up? Thx.

    • On February 18, 2013 at 9:46am, Stephani said...

      Hi Till,

      I don’t cover that topic in the ebook, but I know of people who get around that clause by making their offers in an LLC or land trust, and then selling their rights in the entity to their end buyer. I would check with an atty if you’re going to go that route, though. Or just avoid those properties all together.

      Hope that helps,

      • On February 21, 2013 at 8:19am, Till said...

        Hey Steph,

        Ok. When you deal with REO’s from banks that’s not standard in their contracts? Or is that just with short sales? Thanks for you reply!

  23. On February 21, 2013 at 8:28am, Doni said...

    Hi Stephan. I have been told by reputable folks on bigger pockets that no one can buy property with no money and no credit. I’m confused, is this true or not, I trust u to tell me the truth. Thanks Doni

  24. On July 06, 2013 at 12:07pm, Thomas said...

    Hi, Steph,
    I picked up your ebook and LOVE IT! You are wonderful.
    I have a question as I am a newbie. If I have a contract on an REO through a realtor and I shouldn’t let the realtor know I’m wholesaling it, how can I let my potential buyers see the inside of the property? I’ve looked around on your site and book for details on this. I may be blind and the answer is right in front of me. I apologize if so. Should I just tell them to look through the windows? I’m not sure how to handle this.