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3 min read Jan 22, 2023

How to Wholesale Real Estate Step by Step

how to wholesale real estate step by step

What is Wholesale Real Estate?

Wholesale real estate is how someone, known as the “wholesaler,” gets a contract from the seller of the property and gives that contract to someone else, known as the “end buyer.”

Wholesale real estate is based on the idea of selling a property without actually investing or owning it and still extracting a profit out of it. It is a legal strategy to make money without ever making an offer to buy or putting a down payment.

» How to Wholesale Real EstateLearn how to wholesale real estate with this guide.

How to Wholesale Real Estate Step by Step

1. Research

It is very important to do proper research before starting the process. This includes understanding distressed properties, learning the basics of house wholesaling, meeting important stakeholders and more. Without good research, it is difficult to identify the right property and the right buyer.

2. Market to Sellers

Finding sellers for the properties is the topmost priority for the wholesaler. The marketing message should be clear and concise.

3. Build A Buyers List

To be successful in wholesaling houses, you need to finalize homebuyers. The more you build the buyer’s list, the more exposure you will have when contracting a property with a seller.

4. Purchase and Sale Agreement

After you have found the seller is to get into a contract with that seller. This contract is often referred to as a “purchase and sale” agreement.

5. Find a Buyer

Once the purchase and sale contract is in place, finding the interested buyer is the next step. You can take the help of the buyers’ list that you created earlier to find the relevant buyer.

6. Assign The Contract

The transaction fee (or assignment fee) is defined between the wholesaler and the buyer. This is defined in the assignment contract. 

7. Close And Collect

As part of the process, the wholesaler is required to update the buyer about the repair costs and also furnish the title report with the help of the title company. As part of the deal, relevant payment is made to the wholesaler and the deal is closed.

How Much Money Do Wholesalers Make?

The usual profit varies on the deal, the wholesaler, and other relying factors. The real estate wholesaler gets their money by charging the end buyer a price more than the property under contract.

Consequently, it’s the difference between the price of the property under contract and the actual sale price.

Final Thoughts

Real estate wholesaling can be a lucrative business if done correctly. The wholesaling helps newbies by providing them with a platform to enter the real estate space. With little investment, a wholesaler can earn considerable. Though the process looks simple, there a lot of intricacies and it is always better to learn how to wholesale real estate step by step with the right help.

Wholesaling Houses Near Me

RegionStates/CitiesWholesaling Houses Near Me
NortheastStates Wholesaling Houses in Connecticut | Wholesaling Houses in Massachusetts | Wholesaling Houses in New Hampshire | Wholesaling Houses in New Jersey | Wholesaling Houses in New York | Wholesaling Houses in Rhode Island | Wholesaling Houses in Vermont | Wholesaling Houses in Maine | Wholesaling Houses in Pennsylvania
NortheastCities Wholesaling Houses in New York City, NY |
MidwestStates Wholesaling Houses in Illinois | Wholesaling Houses in Indiana | Wholesaling Houses in Iowa | Wholesaling Houses in Kansas | Wholesaling Houses in Michigan | Wholesaling Houses in Minnesota | Wholesaling Houses in Missouri | Wholesaling Houses in Nebraska | Wholesaling Houses in North Dakota| Wholesaling Houses in South Dakota| Wholesaling Houses in Ohio| Wholesaling Houses in Wisconsin
MidwestCities Wholesaling Houses in Milwaukee, WI | Wholesaling Houses in Palos Heights, IL | Wholesaling Houses in Prospect Heights, IL | Wholesaling Houses in Woodstock, IL |
SouthStatesWholesaling Houses in Alabama | Wholesaling Houses in Arkansas | Wholesaling Houses in Delaware | Wholesaling Houses in Florida | Wholesaling Houses in Georgia | Wholesaling Houses in Kentucky | Wholesaling Houses in Louisiana | Wholesaling Houses in Maryland | Wholesaling Houses in Mississippi | Wholesaling Houses in North Carolina | Wholesaling Houses in Oklahoma | Wholesaling Houses in South Carolina | Wholesaling Houses in Tennessee | Wholesaling Houses in Texas | Wholesaling Houses in Virginia | Wholesaling Houses in Washington, D.C. | Wholesaling Houses in West Virginia
SouthCitiesWholesaling Houses in Austin, TX | Wholesaling Houses in Houston, TX | Wholesaling Houses in New Orleans, LA | Wholesaling Houses in Atlanta, GA | Wholesaling Houses in Allen, TX | Wholesaling Houses in Birmingham, AL | Wholesaling Houses in Bradenton, FL | Wholesaling Houses in Charlotte, NC | Wholesaling Houses in Conroe, TX | Wholesaling Houses in Copperas Cove, TX | Wholesaling Houses in Cypress, TX | Wholesaling Houses in Dallas, TX | Wholesaling Houses in Denton, TX | Wholesaling Houses in El Paso, TX | Wholesaling Houses in Friendswood, TX | Wholesaling Houses in Greensboro, NC | Wholesaling Houses in Humble, TX | Wholesaling Houses in Jacksonville, FL | Wholesaling Houses in Katy, TX | Wholesaling Houses in Kingwood, TX | Wholesaling Houses in Live Oak, TX | Wholesaling Houses in Orlando, FL | Wholesaling Houses in Pasadena, TX | Wholesaling Houses in Pflugerville, TX | Wholesaling Houses in Raleigh, NC | Wholesaling Houses in Red Oak, TX | Wholesaling Houses in Richmond, VA | Wholesaling Houses in St Petersburg, FL| Wholesaling Houses in Sugar Land, TX| Wholesaling Houses in Tampa, FL| Wholesaling Houses in Weatherford, TX
WestStatesWholesaling Houses in Alaska | Wholesaling Houses in Arizona | Wholesaling Houses in California | Wholesaling Houses in Colorado | Wholesaling Houses in Hawaii | Wholesaling Houses in Idaho | Wholesaling Houses in Montana | Wholesaling Houses in Nevada | Wholesaling Houses in New Mexico | Wholesaling Houses in Oregon | Wholesaling Houses in Utah | Wholesaling Houses in Washington | Wholesaling Houses in Wyoming
WestCitiesWholesaling Houses in Las Vegas, NV | Wholesaling Houses in Riverside, CA | Wholesaling Houses in Costa Mesa, CA | Wholesaling Houses in Covina, CA | Wholesaling Houses in Denver, CA | Wholesaling Houses in Los Angeles, CA | Wholesaling Houses in Mission Viejo, CA | Wholesaling Houses in Phoenix, AZ | Wholesaling Houses in San Bernadino, CA

Frequently Asked Questions (FAQs)

1. Do you need money to wholesale real estate?

Surprisingly, you don’t need a huge investment to begin your wholesaling real estate business. But, it is vital to put aside an ample budget for your marketing goals. You can also find a business partner to team up with and finance you along the way. Although this will mean that you will have to split the profit.

2. Do you need a real estate license to wholesale?

No, there is no special requirement to have a real estate license for wholesaling. Nonetheless, it’s a good idea to get a real estate license to get added advantages like access to MLS for leads to ramp up your deals.

3. Is wholesale real estate worth it?

Yes, real estate wholesaling can be a lucrative business. You gain decent exposure to the real estate market and also increase your network. Also, there is minimal to no investment required which makes the job easier for the wholesalers to get into the real estate space.

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How to wholesale real estate step by step Wholesale Real Estate

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