You know the story:
You lock up a probate, pre-foreclosure, or code violation, Etc. deal after weeks (or months) of research, follow-up, and negotiation.
You have a real contract.
Youâve built seller rapport.
Youâve verified title, value, and deal viability, EMD deposited.
Then someone slides into your inbox:
âHey, I got a buyer. Letâs JV 50/50.â
Hold up⊠Fifty-fifty?
PROS & CONS: JV Buyer vs. Contract Holder
CONTRACT HOLDER (You)
Pros of 50/50:
- You move the deal faster with a buyer you didnât have.
- It can be worth it if the JV brings real, verified buyers who can close.
- You save time on dispo â and potentially make a new repeat partner.
Cons of 50/50:
- You paid for marketing, skip tracing, tools, CRM, lists.
- You nurtured the lead, built seller trust, solved a pain point.
- You structured the deal, ran comps, handled due diligence.
- And now someone who just found a buyer wants an equal cut?
In many cases, a flat fee or smaller percentage is more appropriate for someone only bringing a buyer and doing none of the groundwork.
đ§Č JV PARTNER (Bringing the Buyer)
Pros of 50/50 (from their view):
- âWithout my buyer, you canât close.â
- They may have strong buyer relationships and real connections.
- If theyâve built trust with the buyer and can close quickly, they can add massive value.
Cons (in reality):
- Many âbuyersâ are just tire-kickers, or worse â other wholesalers.
- If theyâre shopping your deal instead of closing, that kills momentum.
- If theyâre not under contract with the buyer, itâs speculation, not value.
- If they bring nothing to the table but a vague promise, 50/50 is not earned.
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MY STANCE: VALUE SHOULD DETERMINE THE SPLIT
Did you lock the deal up?
Did you negotiate with the seller?
Did you do title, comps, fact-checking, and confirm itâs a real deal?
Then you hold the paper = you hold the power.
If someone brings a buyer? Awesome. Letâs split â but based on contribution.
- If they bring a real cash buyer who closes fast, maybe 30â40% is fair.
- If you have to still do all the hand-holding, vetting, and coordination? Itâs not 50%.
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Final Thoughts:
We need to stop acting like "having a buyer" equals ownership.
Control of the contract = control of the deal.
Everything else should be negotiable â not entitled. Again, this is my perspective, whatâs yours?Â