Today we talk about Wholesaling Real Estate For Beginners. Wholesale real estate flipping houses will earn you a 6-Figure income and the best part is you do not need any money to get started. Learn from a real estate broker with 15 years of experience in Wholesale real estate flipping houses.
What Is Wholesaling Properties?
In a nutshell, wholesaling means we put a property under contract, and we sell the rights to an investor for profit.
How To Find Super Cheap Homes to Sell?
Just because a home is in the market for a price, it doesn’t mean that is its real worth. It can be more or less. You should master your farm area; you have to know the market prices of the area you’re working on so you may know what truly a right value for every property for sale is. Commonly, your proposal to the seller will go from 50-70% of the real market value for that home.
Why can you place such a low offer? Because the property is being sold as is, repairs or renovations are often needed, and sellers are motivated to sell fast. So your job as a middleman is to find a property, analyze it, and propose a selling price that allows you to offer it for a higher value and thus you and the end buyer will make profit.
How Much Money Can We Make On A Wholesale Deal?
There is no one unique answer for this question. This will depend on each person’s performance, abilities, and dedication to wholesaling. But in order to give you an idea, I calculated an average of earnings from 2015-2020 from my students and myself. Here is how it turned out:
- Minimum profit: $2,887
- Median profit: $8,922
- Average profit: $12,383
- Maximum profit: $26,991
All these numbers are great! Who would love to at least start making the minimum? This is what you could be doing, this is what you can expect in this business. My recommendation is: if a deal won’t get you at least this minimum profit, don’t take it. There are tons of homes, tons of sellers and tons of buyer, and there’s a lot of time and effort behind each transaction so make it worth!
I can also tell a fabulous story about a commercial land deal with a giant profit (not included in the previous calculations) of $127,323. This fantastic deal is a living proof that in wholesaling, sky is the limit!
Wholesaling Real Estate For Beginners Requires Money?
Not really. You can start with just time and hard work. It may be a little rough but never impossible. And after your first couple of closed deals, you can invest in advertising, office supplies, marketing, signs, and stuff like that to improve your presence and thus your profits.
Do You Need A Real Estate License To Wholesale?
Wait! Are you waiting for a longer answer? You could instead start your way into wholesaling but ok, here it is.
It is not necessary to be a licensed realtor to wholesale properties. In fact, being a realtor can be seen as a drawback in wholesaling because you:
- will have a higher level of fiduciary responsibility
- must be extra careful and disclose any license information clearly.
- should get your broker’s approval
- must split your earnings with your broker.
It would be helpful to be familiar with the home buying/selling process and contracts, but this is something anyone can learn, and no assessment is required.
Is Wholesaling Real Estate For Beginners Difficult?
Absolutely not! Focus on staying out of trouble and making a lot of money. There are risks! Of course! A bad contract can get you sued; can make you lose money. You’re dealing with real people’s money and lives as well. And that’s why training is a need. Make your decision of becoming a real estate wholesaler an informed decision. Don’t simply jump out to the market and start the process.
Make sure to find and grasp quality and relevant information about wholesaling in your location. You should feel confident of every step you take, knowing what you’re doing is right for every party. The rest of the process is not too different from any other real estate transaction.
The Right Mindset Will Take To From Zero To Millions
Again, when you have the confidence of what you’re doing is right, that you’re doing a great job, that you’re acting with integrity, when you put your time and effort in the right place, the universe will respond with its best answers.
There is no reason to fail. You have everything you need to start making money in front of you!