Two common structures: (1) You have a deal under contract and another wholesaler has a buyer you cannot reach. They introduce the buyer, the deal closes, and you split the fee. (2) Another wholesaler has a deal they cannot move and you have a buyer who fits — same split. The fee split is typically 50/50 but can vary based on which side is harder to find and what both parties agree to in writing.
When you are building your buyers list, co-wholesaling lets you close deals before your list is deep enough to move them alone. When you are building your deal flow, co-wholesaling gives you transactions to build your buyer relationships while your marketing ramps up. A smaller cut of a closed deal is more valuable than 100% of a deal that never closes.
A verbal agreement on a co-wholesale split is a recipe for conflict. Use a simple one-page co-wholesaling agreement that specifies: the property address, the assignment fee amount, each party's split percentage, and who gets paid and when. Title will often pay both parties directly from closing proceeds if the agreement is submitted in advance.
Dan White is a licensed Virginia real estate agent at Pearson Smith Realty and founder of FreeDealCalc.com. He has been investing in Northern Virginia real estate for 20+ years.