What is Wholesaling Real Estate? Let's Break it Down - myEmpirePRO

What is Wholesaling Real Estate? Let’s Break it Down

So what is wholesaling real estate? It is the art and science of:

  1. Finding deeply discounted properties using marketing
  2. Locking them under a purchase contract and…
  3. Assigning the equitable rights secured by the contract to an able and willing real estate investor who will fund the purchase…

… in exchange for a very handsome lucrative fee.

What is wholesaling real estate and how to start

Is wholesaling real estate worth it?

Assignment fee from a single wholesaling real estate deal can be as low as $1,000 and as high as $82,000 per my personal experience.

But that didn’t start to happen consistently until I built a pipeline lead generation process into a place.

So it is important to note that outside of lead generation, there are tons of time wasting activities that will lead to eventual frustration such as:

  • Driving for dollars
  • Logo designs
  • LLC formation
  • Website designs
  • Legalities
  • And etc…

These are all activities that doesn’t link directly to getting paid and tend to preoccupy wholesale real estate beginners.

Therefore wholesaling real estate is only worth the effort of building a lead generation process and pipeline and you should paying others to do the rest.

How to Start wholesaling real estate

One of the most common obstacles I’ve heard from beginners is trying figure out where to start.

I understand.

There are lots of information and worse, conflicting information from the gurus in the game.

So there are 2 ways to look at that…

(1) Experience

If you want to dive in and start learning from tons of mistakes made by you, your first step is start collecting and analyzing data of distressed properties and property owners.

Here is the #1 tool in the industry to do that – www.EmpireBIGData.com

(2) Mentorship

You can leverage other people’s experience by receiving mentorship and training from them.

But that also comes with your own experience, except that your learning curve will be significantly shortened.

It’s a trade-off between the unknown cost of mistakes and the cost of your mentors time.

You get to decide how you allocate your resources between those choices.

The Cost of Starting a Wholesaling Real Estate Business

So if it’s not clear yet, let me repeat that the business is about your ability to generate leads.

But there are 2 types of leads in wholesaling real estate.

And that also means there are 2 sides of the business that creates a closed deal:

  • Acquisition – Generating seller leads
  • Disposition – Generating buyer leads

So with mentorship, your initial cost should be about $300 per month and that includes tools and actual marketing to generate leads.

Without mentorship, you shouldn’t have to spend more than $200 per month…

But as I said earlier, you have to add the cost of the unknown when you don’t have a mentor that you are working closely with.

So it’s about asking yourself, what time of making mistakes and figuring out obstacles is worth to you.

Consistency, accountability and focus are big variable factors hat determines success and speed to success.


For mentorship, check out www.3PillarSystem.com

Wholesaling Houses & the Law

When you hear that people are making $82,000 from one single deal with a purchase price below $400,000, some think…. ILLEGAL or..

Impossible!

And when people encounter an income strategy that makes them feel confused, they think “scams.”

There are, of course, scam activities out there.

But I have learned to not be quick to think negative when I am confused.

Instead, I take it as an opportunity to learn something new.

For one, wholesaling is a trade concept and it simply means buying something cheaper that it’s present market value.

Therefore wholesaling as a trade concept will never be illegal as long as the goods or services is not stolen.

But wholesaling real estate has become quite popular in recent time; thanks to the gurus.

So that means, there are probably about 500 new wholesalers joining any local real market in any given day.

Naturally, a few bad eggs who will abuse the process has increased as well, so that had attracted some regulations in some states.

However, regulations are nothing for you to worry about unless you are closing more than one deal in any give one year.

Check out best real estate wholesaler best practices here…

QUESTION from a User ⁉️

“I’ve decided to take a different approach with my bandit signs

“YOUR HOUSES SOLD IN 30 DAYS OR LESS” vs “WE BUY HOUSES” ,

and have complete transparency with the seller from the jump.

So automatically they know it could take at least 30 days to sell their home so there’s no unrealistic expectations.

Obviously the goal is to sell ASAP but I think this is less misleading than

“We Buy Houses” because you’re technically not buying the house.

You’re finding a buyer in most cases. Your thoughts?”

ENJOY THE VIDEO ANSWER!

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Padilla 5.0 out of 5 stars ⭐⭐⭐⭐⭐ Awesome book!!
Excellent read!!

Cliff R. 4.0 out of 5 stars ⭐⭐⭐⭐ Full of actionable, useful information for sure.
The author does an excellent job of cutting through much of the real estate wholesaling BS that is prevalent in the market. That is to say while most gurus are teaching what they DO NOT DO, Ola outlines steps of creating value at the center of your marketing. His down to earth delivery just makes sense. He speaks of leveraging technology, the importance of multiple income streams, and an overview of the real estate wholesaling business in the new age of business marketing. For example, he mentions that many people don't even like their family members stopping by unannounced, so how can you expect them to be ultra receptive to a stranger popping up looking to capitalize on a misfortune. Of course that's not how the "Door Knocking" conversation would be framed, but that's exactly what it is. All in all I enjoyed the read and if you plan on making action your focus, you will too.

Brian Ellwood 5.0 out of 5 stars ⭐⭐⭐⭐⭐ Solid Advice From Someone Who's Been There
Ola is a legit real estate investor and marketer. He's a real student of wholesaling and marketing - his approach to marketing for wholesale deals - ADD VALUE - is recession proof and feels right. Don't pass up this book!

Melton Thomas 5.0 out of 5 stars ⭐⭐⭐⭐⭐ A true mindset shift!
As a virtual real estate wholesaler and investor, it makes sense to me to optimize my approach and use technology to drive. This book gave me a clear, concise framework that I could leverage and implement!

stacy 5.0 out of 5 stars ⭐⭐⭐⭐⭐ Amazing
This book is amazing and very beneficial. The author is very knowledgeable on the concepts at hand. Definitely a great book to read.

Is wholesaling real estate worth it?

Wholesaling real estate is the art and science of finding deeply discounted properties using marketing, locking them under a purchase contract and assigning the equitable rights secured by the contract to an able and willing real estate investor who will fund the purchase in exchange for a very handsome lucrative fee.

How do I start wholesaling real estate?

It depends on how you choose allocate your resources between the choices of learning from experience of your personal mistakes or from leveraging a mentor’s experiences to reduce your learning curve.

However the actual first step to start from is collecting and analyzing data of distressed properties and their owners.

How much money do you need to start wholesaling real estate?

With mentorship, it cost between $300 – $700 and without mentorship, between $200 – $600 to start wholesaling real estate.

That include tools and actual marketing to generate leads; acquisition or disposition.

Are wholesaling houses illegal?

Wholesaling real estate will never be illegal because wholesaling as a trade concept is never illegal as long as the good is not stolen

However, some states as a regulation measure make require a real estate license if you are doing more than one deal in a year.

Is wholesaling real estate worth it?

It is only worth it if you apply personal efforts towards building a lead generation process and pipeline; pay others to do everything else.