Can I Really Make Money as a Wholesaler?
In real estate, many people assume that the “big money” is being a flipper. However, one area that people overlook is working as a wholesaler. Many people may not know what being a real estate wholesaler means, but they will find that it isn’t much different from being a wholesaler in other industries. They buy and sell houses quickly without doing the repairs. Sometimes, they will get a property under contract and then find another buyer. In both cases, they make nice profits. If you are just starting out in real estate, this may be the place to do it because it doesn’t have to be expensive. You won’t make a great deal of money, at least to start, but over time you can build up a nice nest egg.
How does wholesaling real estate work?
Wholesaling is actually a simple concept. A wholesaler will buy or get houses under contract at well below market value and then sell to another investor. They deal with investors who have the cash to purchase the homes, because everything goes so fast. In order to be a successful real estate wholesaler, you have to have connections and a keen sense as to where you can find a deal.
How do wholesale deals work?
There are a few different approaches to getting homes for well below market value. Some of them include:
- Seeking out people who own homes but don’t actively live in them. Absentee owners have the motivation to sell much more quickly.
- Working directly with real estate professionals to find values that other people might overlook.
- Consistently researching and looking for the best deals using all of the available technology.
- Hiring real estate professionals to do the above research.
How much money does the typical wholesaler make?
It really depends how much work you are willing to put into the job. Sometimes you’ll make $1-2 thousand per job. Other times you will be able to make over $20,000, it really depends on the property, your connections, and who you work with as buyers. It also takes a lot of work, knowledge, and persistence on your part.
For some people, they may never make much money and consider it to be a hobby.
How do I make a career out of wholesaling?
Like previously stated, not everyone can make a career out of wholesaling. If you want to try, here are the steps:
- Create a plan for how to find buyers for your wholesale properties.
- Start building a list of potential buyers (and sellers) by making connections within the real estate community.
- Make connections that will allow you to find deals on houses that are well below market value.
- Stay consistent – your first deal can take months.
- Keep looking for buyers, the more potential buyers you have, the better off you will be and the more money you can make.
- Always be on the hunt.
For most people, this will never be a career. It seems difficult, and it is at times. If you want to make a lot of money, you need to put in a lot of work.