Get the deal other wholesalers walk away from.
Sometimes a seller's cash offer comes in too low, or they want more and can wait. Most wholesalers walk away. With a partnership (Revive), the seller shares the upside: they keep title, you fund and run the renovation, the house sells at retail, and the seller is paid a share of what's left after costs. You get a deal instead of a no. The Partnership / profit-share tab is your underwriting sheet for that deal; the seller only sees the LOI.
Why it matters
- A deal when cash won't work. Offer the seller more than a cash offer can, in exchange for time, and turn a no into a deal.
- Everyone's payout in plain view. See exactly what the seller receives in all, and what you keep, at four sale prices.
- Know your downside. The break-even sale price shows where you'd start losing money you put in.
Steps
- In the Strategy calculator, open the Partnership / profit-share tab.
- Enter the ARV and a Scenario step. You get four sale prices: the ARV is the second column, with one step below and two above. Each is editable.
- Enter the Loan payoff, or tick Free and clear if there's none.
- Add Money to seller at closing, Rehab budget, Rehab profit, Equity lock, Wholesale fee and Other expense.
- Set Holding (monthly payment plus utilities, times months) and Closing costs as a % of sale price.
- Enter the Profit share to seller. There's no default; it's the deal you strike.
- Read the table: sale price, less closing costs and the cost stack, equals Left to share. Then check Seller receives in all and your share.
- When ready, use Send partnership LOI from a saved evaluation.
Good to know
- Money to seller at closing is an advance on their share and comes out of the seller's share only. Equity lock and Wholesale fee are paid before the split.
- Your share incl. rehab profit adds your margin on the work.
- At the break-even sale price, little or nothing is usually left to split. To see where the split starts, look where Left to share turns positive.
- A flag shows when the payoff is a large share of the ARV. A heavy payoff thins both shares.
- The new-loan purchase block is for you only and never appears on the seller's LOI. PASS means the offer is at or under the Low sale price.
- This is not legal advice. Have a professional prepare the agreement.