I was recently talking with a colleague of mine after work about wholesaling real estate and was surprised that this was still something a lot of people still don’t know about. I first heard about it from The Breakfast Club when they had guest’s Mark Whitten appear on the show. Also, if you’d like to the minutiae laid out in this article, you can find everything you need to know about wholesaling real estate here.
The idea is you find a distress property or absentee owner and get it under contract at a reasonably low price. Again, the key is the seller is motivated. Now, you have to get an investor involved to purchase the property at after repair cost value. This leaves you with a cut of $5000 to $10,000 on the deal. Also, you don’t need a real estate license to do this. There are countless Facebook groups and YouTubers wholesaling real estate.
Get a Mentor
Get a mentor. This is something I advised only because it got me very close to landing my first deal. I was privy to know a couple real estate brokers from previous work relationships. However, there are plenty of mentors online that will get you started. Pick one.
Driving for Dollars
Next, learn how to drive for dollars. You can literally do this on a bike. I did. Search for properties with high grass and for sale signs that look dusty and old. These are the winners, trust me. Some people are paying property taxes on properties they wish they had the time to sale.
Securing the Deal
Once you are able to get both parties (the investor and the seller) to agree on the contract, you will need to find a good Escrow company. They will look into the property for any liens or unpaid HOA fees, etc. That may or may not exist. From there they get a cut, your seller gets a cut, and then you get a cut. Everybody that’s getting a fresh cut like they just left the barbershop, sorry, that’s my only corny joke for today. You get the point by now that this is not brain surgery. There are C and D students out there crushing this hustle, and you can too.
If you would like additional help with finding leads such as motivated sellers and/or cash buyers, click here for more information. If you are a seller or buyer looking to calculate you mortgage cost you can use this free mortgage calculator.
Also, are you a wholesaler, if so, what would say are advantages and disadvantages of wholesaling real estate? Feel free to leave your comments below.