Your Guide to Real Estate Wholesaling
Are you wondering what real estate wholesaling is? Perhaps it’s a new concept, and you’re curious about how to make money in this field of realty. You’ve come to the right place because this is your guide to real estate wholesaling. Read on for answers to your questions about wholesaling in the real estate industry, and how it might be your next great feat in earning a significant income.
What is Real Estate Wholesaling?
Simply put, real estate wholesaling is about standing in as the middle person between buyers and sellers. To explain, a wholesaler takes control of a purchase contract on a home and sells it to a property investor or qualified home buyer.
There are many opportunities in this field of real estate today. So, read through this guide to real estate wholesaling so you can determine if this might be the opportunity you’ve been looking for in the house market industry.
An Example of Real Estate Wholesaling
As a real estate wholesaler, you’re always on the hunt for prime properties in desirable neighborhoods that can be snatched up for pennies. For example, perhaps the owner passed away, or the property is a fixer-upper. Armed with this research information, you can approach the owner to negotiate a price and (ideally) land a purchase contract.
Next, your job is to sell that purchase contract to a qualified buyer or property investor. The buyer of your contract is responsible for renovating and/or reselling the house. Essentially, you are selling the rights of the contract – not the actual property.
How Do You Get Paid?
Once you land the purchase contract, you sell it to a willing party at a marked-up rate. For instance, if you find a screaming deal on a fixer-upper, you may be able to hike the asking price of the contract by 50%, effectively doubling your income. You can also charge a finder’s fee for the time you invested in finding the property and making it available to interested investors.
What Kind of Qualifications Are Required?
Amazingly, there are very few credentials or qualifications required to start a real estate wholesale business. Unlike real estate agents or brokers, you do not need a license to wholesale real estate. If you have motivation, determination, and the ability to understand housing trends, you’ve got a keen advantage to successfully wholesaling.
What Do You Need to Start a Real Estate Wholesaling Business?
If you’ve got a computer and a reliable internet connection, you’re pretty much set to earn money as a real estate wholesaler. Of course, there are other tools such as marketing apps to boost awareness about your wholesale real estate offerings you could and should utilize.
Then again, there are other powerful software aids such as home locators and real estate tools that can help you understand home market trends, pricing, and more. These tools can win you the advantage of landing prime purchase contracts. If you’re interested in getting cutting-edge information in the housing market, consider perusing this PropStream review for tips and pointers on how to make your wholesaling over the top.
What Kind of Money Can Be Made as a Real Estate Wholesaler?
The answer to this question is contingent upon your impetus and determination. If you’re serious about making money in this real estate field, then you’ll do the proper research and groundwork. Doing this should pay off because the base commission of a smartly assessed purchase contract sale averages about $5000 - $10,000.
The smarter you approach your selection of properties and price-point, the better your odds of making a handsome profit. Additionally, you can attach a finder’s fee for finding and attaining the property purchase contract and delivering it into the hands of a willing buyer or property investor.
Is Real Estate Wholesaling Too Good to Be True?
At this point, you might be thinking, “Is wholesaling real estate legal?” It’s a reasonable question. With minimal startup cost, low investment in training, and a high potential for income, the prospect of being a real estate wholesaler might seem too good to be true. Rest assured, real estate wholesaling is entirely legal.
However, be aware that this exciting, money-making position in real estate isn’t a get-rich-quick proposition. As with any independent endeavor, it takes time, hard work, research, and commitment.
While this venue of real estate offers loads of opportunities and advantages, it still requires planning, focus, and organization to get on top of the wholesaling game. All that said, if you have the drive and focus, there is no end to the possibilities this branch of real estate might offer you.