A Complete Guide To Wholesale Real Estate Investing

If you have been looking for a way to have more cash flow with minimal outlay, wholesale properties might be your answer.

Becoming a real estate wholesaler does not require a lot of money, but it requires time, effort, and determination. Beginners can learn quickly with the proper support, and you won’t have to wait long to start turning a profit.

Are you intrigued? Let’s find out more!

Are you feeling burned out from your current career? Are you no longer passionate about your job?

Trying to climb the corporate ladder at a company which may no longer share your values can be both mentally and physically exhausting. Worst of all, that job saps time from your personal life when you could be putting that overtime to better use.

Now could be the time to consider a new income stream from real estate investment.

“Side hustle” feels like the hottest buzzword for people looking to generate passive income fast to escape the corporate grind and ever-increasing squeeze of inflation.

Often, a “side hustle” may not pan out because many methods result in headaches or investment loss. If you have tried your hand at drop shipping or individual stocks, cryptocurrencies, and NFTs, you have probably felt the sting of that pain already.

There is, however, a way to start investing without taking high-stakes risks with your money or working 40 hours a week on a side hustle. The answer is wholesale real estate using raw land as an asset class.

Wholesale real estate with land as your primary asset class does not require a lot of complicated admin, time, or excessive working capital.

When starting any business, though, it is essential to make sure that you are doing your research and understand the investment’s scope.

The business model for wholesale real estate investing using land as your primary asset class is simple. First, you find a property, secure the option to purchase it with the seller, then find a buyer for the property.

That is all there is to the wholesale process. Simple, right?

The wholesaler selling the property (you) contracts the property with the buyer at a higher price than you paid for it. And the difference is your profit.

It is one of the best and easiest ways to break into the real estate industry.

As a wholesaler, you look for unmotivated sellers and/or distressed properties. In other words, the owners are wasting money on property taxes year after year, but they have not yet committed to selling. With the proper amount of research, you could come along at just the right time to take it off their hands for 10 – 15% of the potential market value.

A wholesaler earns profit through a “wholesaling fee,” which is attached to the final transaction. The wholesaling fee is usually a percentage of the final deal price.

Wholesalers generate income by helping realtors identify and close potential deals.  Wholesalers do this by locating and contacting sellers of undervalued or distressed properties, then negotiate a contract to buy the right to purchase the property at a discount. A large part of the process is to market these deals to buyers looking for land lots for various purposes.

In some cases, wholesalers will partner with other investors looking for deals that fit their buying criteria. This is beneficial for Wholesalers because it gives them access to more potential deals, allowing them to move on to the next deal quicker.

Best yet, you need neither a real estate license to be a Wholesaler.

If you have the drive, you can become a real estate investor.