What Is Wholesaling Real Estate?

With the economy in the toilet, many individuals are looking for a way to be their own boss so that they do not have to depend on the state of the market to make a living. At the same time, there are so many “schemes” out there that have a low probability of success that finding the right line of work can be exceedingly difficult.

That is why those that are looking for a line of work that is consistently profitable have turned to wholesaling real estate – finding properties (over distressed) that an individual hopes to unload and dealing that property to a potential property investor.

Wholesaling Real Estate Basics

The basics of wholesaling real estate are as follows:
• There are always downtrodden properties that sellers wish to be rid of.
• There are always investors looking to find a distressed property, fix it up, and resell it for a profit.
• It is difficult for sellers to find investors, and vice versa.

That is where the wholesaler comes in. The wholesaler creates a large database of investors (also referred to as “buyers”) and helps deal the properties of sellers to the investors on their list. Sellers are looking to unload the property by any means possible, so the wholesaler is able to try to work out the best deal for the property and take a large cut for themselves.

Why is Wholesaling Real Estate Profitable?

When a wholesaler has a strong list of potential investors, they are able to sell these properties very quickly. Investors are individuals that are willing to use cash or private lines of credit (not mortgages which take a long time to approve) in order to purchase the property. Buyers are also always willing to invest in the next good deal.

Because of this, wholesalers are able to receive and unload properties at a very fast rate, sometimes in as little as one or two weeks. With profits that can range anywhere from $1,000-$20,000, all it takes is a few deals to mirror the amount you would make at a “regular job” and a few more deals to find yourself profiting more than you ever imagined.
Who Can Get Started in Wholesaling?

There are really no qualifications for becoming a good wholesaler. It does require that you learn the business inside and out, and that you are able to dedicate yourself to it full time as you start to build your extensive buyers list and shop around for the best property deals. However, once you get into a groove, you have built a strong and diverse buyers list, and you have learned all of the secrets of wholesaling effectively, wholesaling becomes second nature and a great way to earn a lot of money at home. n