Let's Talk Real Estate Wholesaling

To stand a chance in real estate wholesaling (and, really, ANY kind of business and/or investing), it's important that you fully understand the model.  Without a good understanding and foundation of what it is, you'll constantly be guessing, taking unnecessary risks, and even tarnishing your own up-and-coming reputation in the industry simply due to a lack of knowledge (aka ignorance).

I don't want any of this to happen to you.

So, let's take just a few minutes to be sure you have a good grasp of the concept and are making an educated decision about whether or not it's a good fit for you and how to move forward. 🙂

Real Estate Wholesaling 101

Wholesaling v Fix 'n Flip

Most people with an interest in real estate investing are familiar with "flipping" or "fix 'n flip" investing.

Simply put, this is the act of buying a property (usually distressed), remodeling or fixing it up (bringing it up to fair market value), then selling it on the open (usually retail) market for a profit.

While this can be and is a profitable model for real estate investing that's pursued by many, it's not meant for everybody.  It requires either far more expertise and knowledge than wholesaling and either personal remodeling skills or the ability to hire contractors and support construction personnel to do the "fixing" for you.

Yes, this also typically means either financial backing, loans, or otherwise tying up your own funds for the purchase, materials, labor, and time spent sitting on the market until it sells.

When I got started, I didn't have any money... and I know (since you're reading this) you're likely in that same boat.  Now, it took me several years and money spent (as I could) on books, classes and seminars, software, etc. trying to piece the process together and figuring out how to make it work for ME.

See, wholesaling doesn't require a lot of money upfront (sometimes none as long as you have access to a few resources to get you started), involves little-to-no risk (provided you do it correctly), means you never have to fix anything or hire any kind of remodelers, yet can yield significant checks -- which can obviously be used for other endeavors, to scale your wholesaling business into a full-blown venture, etc.  (To-date, my lowest check was $1,000... and that was on a small vacant lot that I acquired literally as an experiment. Lol)

Disclaimer:  My results are not a reflection of what you can expect or guarantee of your results and should not be construed as such.  You're responsible for your own efforts and outcomes.  I have no accountability or liability to the level of your profit, loss, success, or failure.

In a nut-shell, you're flipping a house (deed or the equivalent in your state or jurisdiction), while in wholesaling, you're flipping a contract.  That's it.  Sounds really simple, right?  And it is... to me.  Simple, however, doesn't always equate to easy, and you'd do yourself well to understand the difference.

The Wholesaling Model Breakdown

In its simplest form, here's the way the real estate wholesaling model breaks down:

  1. Get a contract on a property that's well below its retail value
  2. Locate a qualified buyer
  3. Assign your contract to the qualified buyer for a fee
  4. Collect your check

I told you it was simple, right?!

Now, yes, of course, there are "moving parts" and things like...

  • How and where do I find good properties?
  • How and where do I find qualified buyers?
  • What paperwork do I need and where do I get it?
  • How do I evaluate properties and negotiate with sellers?
  • What terms do I use with buyers?
  • Where and how do I close my deals?
  • ... and so on.

For a more in-depth look and step-by-step instructions, I've written a book for you.  Check it out here.  I wrote it to be all-inclusive so... you CAN seek out other resources if you want, but you genuinely should have no actual need. 🙂  Inside I also include information and links to supplies, resources, connections, etc.  Click here now to see if this is right for YOU!