Trending Now :

Re-Drafting the 2023 IPO Class The Interest-Free Installments Economy FICO Scoring Models: Explained Fed Holds Off on Rate Hike Rise of the Global Middle Class: Opportunities and Challenges Protect Yourself from Financial Scams Money Motivators Mortgage Rate Buydown What Does the Hot Inflation Report Mean for the Housing Market How Do You Build Wealth: Invest in Yourself Times Up for Programmed Money Biggest Financial Crimes: Countrywide Quantitative Tightening, Inflation, & More The Stock Market Is On Sale Investors Need to Netflix and Chill Credit Card Fixed-Interest Loans: Explained Are You Money Smart? Build Your Credit for Free Filing Your Taxes in 2022 Credit Cards that Offer 2% Cashback on All Purchases Navient Ordered to Cancel Student Loans U.S. Mortgage Interest Rates Soaring Two Big Banks Cut Overdraft Fees 2022 IPO DRAFT CLASS: Ranking the Top 10 Prospects Re-Drafting the 2021 IPO Draft All You Need to Know about Buy Now Pay Later companies Credit Card Sign-Up Bonus or SUB The Best Credit Card for the Middle-Class Make An All-cash Offer with No Cash Capitalism Always Ignores Politics All You Need to Know about the Financial crisis of 2007-2008 American Families Face Serious Rent Burden Savings Is An Expense You Can’t Build Generational Wealth If You Are Broke IT’S OFFICIAL: Robinhood is a Meme Stock All You Need to Know About Biden Mortgage Modifications & Payment Reductions Apple Card 2nd Year Anniversary: Should You Get It Now Wells Fargo to Pull Customers Personal Lines of Credit The Rise of Individual Investors The US Housing Market Is Booming. Is a Crash Ahead? Financial Literacy: How to Be Smart with Your Money Non-Fungible Token (NFT):EXPLAINED SKYROCKETED CEO PAY & LONG LINES AT FOOD BANKS Amazon Workers Want to Unionize Another Major City Piloted Universal Basic Income The New Bubble: SPACs SUBMIT YOUR PPP ROUND 2 APPLICATION BEFORE MARCH 31ST Robinhood-GameStop Hearing & Payment for Order Flow Guess Who’s Coming to Main Street Democratic Senators Say No to $15 Minimum Wage BEZOS OUT! President Biden Most Impressive Act Went Unnoticed: CFPB Biden $1.9 Trillion Stimulus Package 2021 IPO DRAFT CLASS: Ranking the Top 10 Prospects $25 Billion Emergency Rental Assistance NO, TESLA IS NOT WORTH MORE THAN TOYOTA, VOLKSWAGEN, HYUNDAI, GM, AND FORD PUT TOGETHER AMAZON TO HAND OUT ITS WORKERS $300 HOLIDAY BONUS Where Does the American Middle-class stand on Student Debt Relief? Joe Biden’s Economic Plan Explained 4 TYPES OF BAD CREDIT REPORTS AND HOW TO FIX THEM What Is the Proper Approach to Not Buy Too Much House? FISCAL STIMULUS PLANS STILL IN ACTION How to Pick Investments for Your 401(k) 10 Simple Ways to Manage Your Money Better All You Need to Know about Reverse Mortgage All You Need to Know about Wholesale Real Estate Credit card Teaser Rates AVERAGE CREDIT CARD INTEREST RATE SURGES TO 20.5 Percent Trump Signs 4 Executive Orders for Coronavirus Economic Relief The Worst American Economy in History WHY CREDIT CARDS MINIMUM PAYMENTS ARE SO LOW? 10 BIGGEST COMPANIES IN AMERICA AND WHO OWNS THEM White House Wants to End the Extra $600-A-Week Unemployment  10 Countries That Penalize Savers FEWER CREDIT CARD BALANCE-TRANSFER OFFERS ARE IN YOUR MAILBOX Private Payrolls and the Unemployment Rate SHOULD YOU BUY INTO THE HOUSING MARKET RESILIENCY? WILL WE GET A SECOND STIMULUS CHECK The Child Tax Credit and Earned Income Tax Credit THE RETURN OF BUSINESS CYCLES Should You Request a Participant Loan or an Early 401(k) Withdrawal? Homebuyers Should Not Worry about Strict Mortgage Borrowing Standards The Potential Unintended Consequences of Mortgage Forbearance All Business Owners Need to Know about the Paycheck Protection Program 10 MILLION UNEMPLOYMENT CLAIMS IN TWO WEEKS HOW WILL THE GLOBAL MIDDLE-CLASS RECOVER FROM A SECOND ECONOMIC RECESSION IN A DECADE? WILL U.S. CONSUMERS CONTINUE TO SPEND? HOW’S YOUR 401(k) PRESIDENT TRUMP SIGNS $2.2 TRILLION CORONAVIRUS STIMULUS BILL MIDDLE-CLASS NIGHTMARE: MORE THAN 3.3 AMERICAN FILED FOR UNEMPLOYMENT CLAIMS IN THE US LAST WEEK. LAWMAKERS AGREED ON $2 TRILLION CORONAVIRUS STIMULUS DEAL CORONAVIRUS STIMULUS PACKAGE FAILED AGAIN IN THE SENATE APRIL 15 (TAX DAY) DELAYED DEMOCRATS AND REPUBLICANS DIFFER ON HOW $2 TRILLION OF YOUR TAX MONEY SHOULD BE SPENT YOU CAN DELAY MORTGAGE PAYMENTS UP TO 1 YEAR, BUT SHOULD YOU? 110 Million American Consumers Could See Their Credit Scores Change The Middle-Class Needs to Support Elizabeth Warren’s Bankruptcy Plan The SECURE Act & Stretch IRA: 5 Key Retirement Changes 5 Best Blue-chip Dividend Stocks for 2020 9 Common Bankruptcy Myths 401(K) BLUNDERS TO AVOID Government Policies Built and Destroyed America’s Middle-Class & JCPenney Elijah E. Cummings, Esteemed Democrat Who Led the Impeachment Inquiry into Trump, Dies at 68 12 Candidates One-stage: Who Championed Middle-Class Policies the Most WeWork: From Roadshow to Bankruptcy Stand with the United Auto Workers Formal impeachment Inquiry into President Donald Trump America Is Still a Middle-Class Country SAUDI OIL ATTACKS: All YOU NEED TO KNOW THE FEDERAL RESERVE ABOLISHED BUSINESS CYCLES AUTO WORKERS GO ON STRIKE Saudi Attacks Send Oil Prices Spiraling REMEMBERING 9/11 What to Expect from the 116th Congress after Their August Recess Should You Accept the Pain of Trump’s Trade War? 45th G7 Summit-President Macron Leads Summit No More Upper-Class Tax Cuts Mr. President! APPLE CARD IS HERE-SHOULD YOU APPLY? THE GIG ECONOMY CREATES A PERMANENT UNDERCLASS 5 REASONS IT’S SO HARD FOR LOW-INCOME INDIVIDUALS TO MOVE UP TO THE MIDDLE CLASS ARE YOU PART OF THE MIDDLE CLASS? USE THIS CALCULATOR TO FIND OUT? WELLS FARGO IS A DANGER TO THE MIDDLE CLASS The Financialization of Everything Is Killing the Middle Class
Wholesale Real Estate
American Middle Class

All You Need to Know about Wholesale Real Estate

The estimated reading time for this post is 310 seconds

What is wholesale real estate?

Wholesale real estate is the process by which an organization or a person:

#1 Purchases property as an investment opportunity.

#2 They then find an investor to buy this property at a marked-up price.

#3 They make a profit from the difference between the purchase and sale price.

As real estate wholesaling has become increasingly popular, many people began to see it as an easy way into the realty industry, but this couldn’t be further from the truth.

Unless you are willing to go the extra mile and work incredibly hard to become an expert in the field, you’re simply wasting your time and money. You need to be able to identify top-quality investment properties, negotiate a heavily discounted price, and then find an investor to pay you a higher price than you paid, to become a successful real estate wholesaler.

Wholesaling involves extensive research to have any chance of discovering heavily discounted properties, and then you need to fix them under contract or purchase them, the next step is to either reassign them to another real estate investor or sell them as quick as you can

Here are some things you should know before you start

#1 You typically don’t buy any property

As a real estate wholesaler, you usually will not purchase any investment property.  Your goal is to place a property under contract without having to come out of pocket for any money. Then this contract is reassigned to an investor. Your goal is to make as much profit as possible by finding the best real estate investments available. Some real estate wholesalers, as they progress in their careers, do end up purchasing some properties to resell. It’s known as double closing, where they and their customers will simultaneously close deals.

#2 It’s all about the discount

Your only goal from the minute you wake up is to find as many deeply discounted investment opportunities that you can get under contract as possible. Then you want to sell these and assign them to investors at a below retail price. This is why most wholesalers are constantly on the hunt for off-market properties.

To be successful, a real estate wholesaler, once they have found an investment opportunity, will need to be able to buy or get this property under contract at a heavily discounted price. Most successful real estate wholesaling businesses will often involve a team of people and a significant investment in marketing to allow you to identify properties before they come on the market successfully.

You will continuously be searching for properties that can offer the highest level of profit. This will involve extensive research on neighborhoods and cities to identify the best investment opportunities that exist.

#3 Who you know is just as important as what…..

Finding properties is only one part of your job; you also need to develop an extensive list of reliable investors. Your clients could be anything from small individual investors to large institutional investors, and they can be located anywhere. Some of the top wholesalers market their services to international investors, as many of them do not have the necessary expertise needed to successfully invest in specific regions successfully.

#4 Volume is king

As you will likely only make a small profit on each deal, you will be very dependent on the high turnover of properties to keep your business profitable. You may also need to employ sales, research, and administration staff.

For example, if you’re retaining a staff of three employees. You will need to turn over at least 10 deals a month to cover your expenses before making a small profit. For example, if you get a house under contract for $90,000 and you’ve sold it to an investor for $93,000, you’re making a profit of $3000. When you cover all your salaries, taxes, and expenses, you may breakeven at the end of the month.

This is a long-term vision, it is most likely you will be a sole trader starting out, but that’s not going to be a sustainable model in the long run. Your goal should be to expand your business and successfully retain as many individual and institutional investors as possible. While you build a team capable of identifying and wholesaling a larger amount of property?

#5 Think big or go home

As you probably already know, real estate wholesaling is the transactional business and will involve a much larger commitment than you may have initially thought. If you’re going to do this on your own, you can forget about, taking a day off, or getting sick, for the foreseeable future as you’ll never be able to stop working.

To build a successful wholesale real estate business, you need to recruit a strong team behind you, people who understand dispositions, acquisitions, and admin. Ideally, it would help if you look to build a three-person team.

  • Person No.1 – In charge of acquisitions – negotiating deals, meeting sellers and generation leads
  • Person No.2 – In charge of dispositions – Selling the properties, building your buyers list, networking with cash investors, and finding new investors.
  • Person No.3 – In charge of admin – someone is going to have to take charge of all the paperwork,

Starting, you are going to be all of these, but as you progress, you should look to find someone to replace the skillsets that you’re weakest at. If you are a salesperson at heart, then employ someone who loves admin. They can help support you and make your business grow and run smoother.

#6 Not for the faint-hearted

The wholesale real estate industry is highly competitive, and it’s not easy to break into it. The best in the business are incredibly specialized and highly trusted real estate experts. They have a list of investors that employ them to provide a vitally important service. If you’re looking to make a quick buck, this is probably not the business for you. It isn’t the easiest way to get into real estate investing, no matter what you may have read. But if you’re willing to put in the time and energy and learn what it takes to become an expert, wholesaling real estate could prove very comfortable.


Senior Accounting & Finance Professional|Lifehacker|Amateur Oenophile

Continue Reading
Click to comment

Leave Comment

Stock News / Jan 02, 2024

Re-Drafting the 2023 IPO Class

The estimated reading time for this post is 147 seconds The Initial Public Offering (IPO)...

Stock News / Dec 29, 2023

2024 IPO Draft Class

The estimated reading time for this post is 151 seconds 2024 IPO Draft Class: Ranking...

Stock News / Dec 22, 2023

Build Wealth with Boring Investments

The estimated reading time for this post is 314 seconds Due to their boredom, long-term,...