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Wholesaling Real Estate for Beginners

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Wholesaling real estate for beginners

There is excellent earning potential in real estate investing; we all know that. After all, real estate investment is how many of the ultra-rich have always made their fortunes. But what do you do when you don’t have the capital to invest in property? Isn’t this type of investment only for people with real money?

Actually, no. With real estate wholesaling, you can step into the real estate market and become a serious real estate investor. And if you enroll for the Total Access Pass by Property M.O.B., you have all the knowledge and expertise you need to become a property ninja.

What is real estate wholesaling?

Real estate wholesaling is a strategy that allows you to enter the real estate market without spending a penny of your own money. How is that possible?

With estate wholesaling, the wholesaler gets a targeted property under contract and assigns that contract to a buyer at a higher price. So, as the wholesaler, you enter into an agreement with the seller, but you don’t buy the property; you assign that right to another buyer.

The process works like this.

  1. You choose a target area to search for properties and distressed sellers.
  2. You take note of the address and then consult the local municipality records to trace the owner of the property.
  3. Once you have the person’s contact details, you contact the owner to find out if they are prepared to sell. In many cases, owners who are reluctant to go through the schlep of selling, dealing with numerous estate agents and people traipsing through their property, will be happy to enter into an agreement to sell quickly through a wholesaler.
  4. The two of you negotiate and come to an agreement in which the owner will sell for $150,000.
  5. You now have the property under contract for $150,000, but you don’t buy it.
  6. Instead of buying the property, you get in touch with your cash buyers. You find one that’s prepared to accept the contract from you for $165,000.
  7. You assign the purchase contract for $165,000 over to the cash buyer, which leaves you with a profit of $15,000.

The point to understand is this: you are not purchasing a property and selling it; you have a contract with the seller and you find a cash buyer for the property. Your aim is to find a cash buyer before your contract with the seller expires. If you find a cash buyer and you don’t spend any money in the sales process, how do you make money?

You make a profit by getting a cash buyer who agrees to buy the property at a higher price than you agreed with the seller. As the middleman in the deal, you facilitate the sale for the seller and buyer of a property that you contracted for less than market value. The buyer gets a property at a rock-bottom price which can be renovated and resold at a profit.

Can you make real money with estate wholesaling?

As with any profession, the amount of money you can make depends on your work ethic and your level of expertise. Some wholesalers make huge amounts of money, others make modest amounts and others fail to make any money at all.

While there are those who make as much as $40,000 - $50,000 per month, that’s the exception. It’s more reasonable to expect to make $10,000 to 15,000 per month when you start out. To make those large sums, you need to move several properties per month and that is very difficult to do on your own.

The wholesalers making that kind of money probably have people working with them and are spending huge sums on marketing. You can definitely make real money with wholesaling, but it won’t happen overnight and you’ll have to put in real effort.

Tips for making a success of this business

  • Get hold of reliable and expert knowledge

Invest in a couple of real estate investment courses that can set you up for success as a real estate wholesaler. Property M.O.B. has a real estate investing academy that offers over 30 real estate investment courses compiled by a real estate wholesale veteran who closed more than a thousand deals. You will learn everything you need to know to hit the ground running in real estate investment.

  • Find wholesale opportunities

Fortunately, there are many resources, apart from driving around and scouting for abandoned homes, you can do direct mail campaigns, networking, visit auctions, and consult Craigslist or Zillow to find homes for sale. You could also put some signs up at strategic places in the area to advertise that you buy houses. A high-traffic website is also a great way to generate leads by capturing email details from your site visitors.

  • Build a killer buyers list

A dependable and authentic buyers list is where your money will come from, so work diligently on it. Without it, you have no business.

The secret of a buyers list that generates income is one that doesn’t contain a long list of names. This is because you need to build strong business relationships with your buyers and that’s hard to do with a large number of people. As with sellers, there are many resources for finding cash buyers.

You can use many of the same resources you used to find sellers, including Craigslist, auctions, networking, and lead generation via your website. You can also subscribe to wholesaler buyers’ lists or try to find hard money lenders who often help cash buyers out with money to make up the full amount of the purchase price. Such a person might be able to put you in contact with cash buyers.

Photo by Behramann on Unsplash
  • Really know property values and costs of renovations in your area

This point can’t be stressed enough. Both the seller and the buyer want a fair deal, and you can only facilitate that if you know the value of properties, what it will cost to renovate, and what buyers are prepared to pay for a property they intend to flip.

Final thoughts

As you can see, it’s tricky to become a successful real estate wholesaler. It’s not a get-rich-quick strategy. What you need is hard work, commitment and expert guidance that Property M.O.B. can provide. If you want to do property investment like the ultra-wealthy, invest in a Total Access Pass from Property M.O.B. It will provide you with all the information you need to become a real estate wholesaler that makes real money.

Click here to get your Total Access Pass for only $298.

One comment on “Wholesaling Real Estate for Beginners”

  1. WRONG: "The secret of a buyer's list that generates income is one that doesn't contain a long list of names..."
    Most of what's here is correct, but really lacks important details. however, this one statement is categorically false and should be ignored. it's CRITICAL your buyer's list is as long as possible. This is not mutually exclusive of building tight relationships with a few buyers.

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