myEmpirePROQuestion: How do Real Estate Wholesalers get paid?
I don’t like the phrase “Real Estate Wholesalers”
But it’s real.
I personally don’t like using it but it’s much more important for you to understand why I don’t like using it rather than being religious about that.
The reason why I don’t like using it is because everyone, their Moms and their Pops are wholesalers right now…
Even if they’ve never closed a deal before in their life.
And you wanna make sure you separate yourself from that crowd.
Wholesalers are hustlers.
I don’t teach people to be hustlers.
Don’t get stuck with that terminology.
If you’re a hustler in most contexts, you’re not thinking strategies. You are not thinking…
“this is a profession” and “I need to serve people”.
All you’re thinking about is the Lamborghini, X5 and the BMW
…if that’s all you’re thinking about, you’re much more concerned about the lifestyle.
And there is nothing wrong with that.
But there’s a place for that and there’s a place to actually learn the skill set that’s involved in Wholesaling.
Wholesaling is one extra strategy when you’re investing in Real Estate.
Real Estate Investing = you buy low, you sell high.
Simple, right?
Wholesaling is when you lock-up a house under a purchase contract instead of actually buying it.
You have intentions to actually get it closed because that’s how you make money but you’re not going to be the person to actually buy.
You’re not the end buyer; as all you are doing is helping an end buyer secure a deal.
An end buyer, cash buyers or investor don’t necessary have the time to find deals.
They don’t have the system in place to find all these really good deals.
What do I mean by good deals?
…50 cents, 40 cents on a dollar, they wanna pay 40-60% of what the property is actually worth.
Why, because that’s how they make money.
They wanna add some value to the property and flip it back into the market and then they make profit.
It’s a noble way of making a living.
So if you help them secure these deals, you help them find these kinds of deals, they’ll pay you a little something…
$5,000, $10,000, $30,000 depending on the size of the deal, average in $25,000. Why?
Because you don’t wanna deal with houses but you still want to add value to the market place…
If you’re marketing to places where properties are worth $10,000-$15,000,
…there is no meat on the bone for you to make money.
ON THE PREVIOUS POST – How Can I Legally WHOLESALE REAL ESTATE?
So how do real estate wholesalers get paid?
You get paid because you help cash buyers find and secure deals. You help somebody save time and resources as well as create leverage for their business.
So if you show up all the time with a good deal already written in a form of a contract,
For example, the property is worth $400,000.
…but you were able to secure that property at $230,000.
It needs about $20,000 of work, you charge them $25,000… so they spend about $275,000 and they sell it back to the market.
Gross profit is about $125,000.
So after investing almost nothing because for the most part, they’re probably gonna use the bank’s money,
…which is other people’s money even if it’s private funding
…they make money, they feed their family that way and if you have them secure those deals, you get paid.
That’s how wholesalers get paid.
So in reality, how do real estate wholesalers get paid?
TRENDING POST – Smart Real Estate Wholesaling
The way you get paid is by having marketing systems in place to find these deals; it’s not about chasing houses around the streets.
Houses don’t become money, it’s the people behind the ownership of those houses that tend to be distressed
…and you can help them get rid of these properties by simply locking it under a purchase contract and getting it sold.
Help them get rid of the property then you keep it moving.
Majority of the houses you’re gonna encounter are not gonna be deals so you don’t want to be doing this business in a way that you’re stuck with manual work.
Like for example,
Driving for dollars around town, you could get lucky but I don’t teach people how to get lucky.
I teach people how to build a business out of this; essentially how to build a marketing business.
It’s all marketing at the end of the day.
It’s about learning how to find the right prospect because you’re going through thousands upon thousands of prospects
But you’re gonna pre-qualify them using systems.
Not with your mouth, not with your personal time because there are only 24 hours of it in a day.
You gotta learn how to use systems to do that…
…and that’s what we cover heavily inside of the challenge
Hopefully you are already going through the challenge so that you don’t have to do all these kinds of manual work that you hear people preaching about out there.
See… the simpler or,the easier it seems on the far front, the more people are coming in it, the higher the chances you’re not gonna make money.
But if you are willing to do the extra mile, and learn the skill set then you increase your chances dramatically of making money because most people are looking for easy.
And in life, especially in business, easy is a word that’s not relevant.