Make $5,000+ FAST Flipping Homes…Even with Bad Credit?
Welcome to Wholesaling
For investors who don’t want to deal with leaky toilets or who don’t have a big bank account, wholesaling is a fast investment strategy any investor should consider.Wholesalers don’t need to worry about:
- Construction costs
- Leaky toilets
- Your credit score
All you have to worry about is finding a good deal.
As Chris Bruce shared in our latest DreamNation episode, it’s possible to wholesale with a lot of properties (Chris had 26 at one time), flippin each one to make quick cash.
What Do Wholesalers Do?
Wholesalers are the “person in the middle” who connect motivated sellers with buyers. Wholesalers do the work of finding undervalued or discounted homes, meaning homes that are worth more than they are being currently sold for, and selling them to buyers at a higher price. Once a wholesaler finds a buyer, their job is done and they collect the cash from the deal.
Breaking down the Process: How Wholesaling Works
Because wholesaling can be a little complicated for newbie investors, let’s break down the process a little further to help you understand.
- Find a property. You want to find a property that is worth more than it’s selling for (like a shirt you bought on sale for $10, but sell for $15 on eBay.). You can do this through online advertising, networking with other investors, mailing out postcards, or driving for dollars (looking for “for sale” signs in your local area).
- Get the seller to put you on contract. One key to wholesaling is getting the contract. Remember you are not selling the house, you are selling the contract to the house. When you sell the contract, no money comes out of your pocket. (You also don’t get in trouble for selling without having a real estate license!)
- Find a buyer Your next step is to sell the contract to the buyer.The buyer could be another investor or contractor. The buyer will pay you in cash up front or a loan.
- Start the closing process Finding a buyer is not the final step in the process. As you recall, you are not selling the home. You are selling the contract on the home. The title company handles the process and it’s your duty to make sure the process is completed.
- Collect your cash. The deal is done and you can go onto your next deal.
Wholesaling is a way for sellers who feel they can’t (or don’t want to wait) to sell their home. Wholesalers offer a quick way to get the property sold faster and with less fees than your traditional real estate
How Much Can I Make?
It depends on your skills and network as a wholesaler along with the area that you choose to work in. An average from some Internet sources is $5,000, but expert wholesalers can make up to $100,000 and up depending on the deal.
What Mistakes Should I Avoid as a Wholesaler?
Wholesaling is fast money, but there are some things you want to watch out for while making that fast money
- Getting into real estate agent territory Only real estate agents with an active license can sell houses, not wholesalers. Also, only licensed real estate agents can sell leads for a fee
- Not running the numbers To make a good profit, make sure you’re using the right numbers
- Not finding buyers in time Wholesaling is a fast game because wholesalers must find buyers before the contract closes
- Not getting advice Wholesaling is not an investment strategy that you can do alone. You need the advice of experts (like attorney or title professionals) to help you understand the different aspects of wholesaling.
Wholesaling: Fast Investing Strategy for Smart Investors
Despite what you might see on the Internet or TV, wholesaling is not a “get rich quick” scheme. It is an investing strategy for investors who are willing to put in the research and communication skills on the front end to start making cash flow on the back end of the deal.
If that sounds like you, now is one of the best times to find motivated sellers.
Need help getting started?
Casanova Brooks has a FREE webinar and FREE book (just pay S & H) that offers tips and tricks to getting started in real estate, include wholesaling and a lot of other ways with less money and more knowledge.
Check those resources out if you need a low-cost way to get some knowledge from an expert!