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The Ultimate Co-Wholesaling Contract (Template Included)

Jerry Norton

Aug 15, 2024

bird's eye view photography of houses

What I love most about real estate investing is that there’s no one size fits all to it; instead, you can add your own creativity and strategies, which can be advantageous in so many ways. 

Take co-wholesaling for example. It’s wholesaling, but with a twist: you partner with another wholesaler on a deal.

While the downside is that you’ll have to split your profit, the upside is that if you’re a new or beginner investor, you get to do a real deal with another experienced investor, seeing the ins and outs of the wholesaling process in real time. 

Experience and profit at the same time! There's nothing better than that, right?

Before you partner with another wholesaler, how can you know if they're right for you?

10 Questions to Ask a Potential Co-Wholesaler

Here are 10 important questions to ask a potential co-wholesaler before joining them on a deal.

  • What do you propose the profit split would be?
  • What work needs to be done to the property and how much will it cost in your opinion?  
  • What is your estimated After Repair Value (ARV)? 
  • Do you have 5-6 relevant comps no further than 1/2 mile away to support it to support your ARV?
  • Are there any more people involved on the deal?
  • How do we get access to the property to have potential cash buyers come through to make an offer? Lockbox? You? Owner? 
  • Is the home occupied or vacant? If occupied, is it the actual homeowner or a renter?
  • What title company/closing attorney are you looking to use and have you done wholesale deals with them before? 
  • Who is the contact person and their contact info at the closing company? 
  • Is this deal going to be a single closing assignment or does it need to be a double closing and if so why? 

Co-Wholesaling Contract Template

If you're ready to do a co-wholesale deal, you'll want a sound contract before moving forward.

That's exactly what we'll show you next — a template to show you what you need in a co-wholesaling contract — but first a disclaimer!

This contract template is for informational purposes only. By accepting this material, you recognize that the publisher is not engaged in offering or providing legal, accounting or other professional services. The advice and strategies contained herein may not be suitable for your situation. You should feel free to and are advised to consult legal, accounting or other professional advisors. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential or other damages.

Now that is out of the way, let's take a look at a template.

15 Business Day Joint Venture Option Contract 

Received from: ___Johnson Homes, LLC______ (Buyer/JV Partner), the sum of $10.00 (ten dollars) Shown by___ Cash, X Cashier’s Check, ___ Personal Check, or Other______________. 

Payable to ___Smith Homes, LLC______ (Seller/Contract Holder), to be held uncashed until this option is accepted as deposit. Toward the price of: ($150,000.00) One hundred and fifty thousand Dollars. 

1) Property: Seller/Contract Holder hereby gives and grants to Buyer/JV Partner and\or assignees for a period of 15 (fifteen) business days from the date hereof, the exclusive right and privilege of purchasing the following described real property located at: Property Address: 123 Main Street, Mesa, AZ 85203 

2) Seller/Contract Holder Agrees to a 50/50 split of proceeds over and above sales price with Buyer/JV Partner. 

This is a legal and binding contract and has been thoroughly reviewed by both parties. _________________________________________________________ 

By: John Smith (Seller/Contract Holder) Date Member SMITH HOMES, LLC __________________________________________________________ 

By: Jim Johnson (Buyer/JV Partner) Date Member Johnson Homes, LLC 

Business Day Joint Venture Option Contract 

Received from:_________________________ (Buyer/JV Partner), the sum of _____________________ Shown by___ Cash, ___ Cashier’s Check, ___ Personal Check, or Other______________. 

Payable to ________________________ (Seller/Contract Holder), to be held uncashed until this option is accepted as deposit.

Toward the price of: ________________________________________

1) Property: Seller/Contract Holder hereby gives and grants to Buyer/JV Partner and\or assignees for a period of ______________ business days from the date hereof, the exclusive right and privilege of purchasing the following described real property located at: Property Address: ____________________________________ 

2) Seller/Contract Holder Agrees to a ________ split of proceeds over and above sales price with Buyer/JV Partner. This is a legal and binding contract and has been thoroughly reviewed by both parties.

_________________________________________________________ 

By: (Seller/Contract Holder) Date Member __________________________________________________________ 

By: (Buyer/JV Partner) Date Member

The Bottom Line: Co-Wholesaling

Like I said, co-wholesaling is wholesaling but with a twist, and it can be especially advantageous if you're a beginner real estate investor.

Use the template in this article to help you create your own co-wholesaling contract, and be sure to ask the questions we provided to a potential wholesaling partner before getting started.