myEmpirePROAs simple as real estate wholesale is, it is not easy. But that’s why our competition in the business when it come actual doers are very low.
“3” Step by Step Guide to Real Estate Wholesale Business
STEP 1 – Find a deeply discounted property using mass media marketing.
This is primarily and marketing.
With every marketing, you need to have a target market.
The only way it will make sense for any one to sell their property at a 35% or more discount less the estimated cost of repair is be in some kind of distress.
- May be they owe much more than the property is worth in mortgages.
- They lost their job.
- Property needs a lot of repair in other to sell at full retail value.
- and etc.
Distressed home owners are the target market for real estate investors and wholesaling professionals.
Simply subscribe to services that offer list of potential distressed home owners such as preforeclosures, vacant properties, out-of-state owners etc, download the list of properties and contact the owners offering to purchase their properties.
You can contact them by mailing directly to them or by phone…
In which case you will need to skip trace the data for phone numbers. This is cold calling.
Either you are contacting them by mail or phone, marketing skills and phone conversation (possibly sale skills) may be required.
STEP 2 – Lock it under a purchase contract
Once a home owner agrees to a steep discounted price, the next step is to have them agree in black and white via a simple real estate sales contract.
You can use our calculators at DealEstimator.com to generate an offer.
Once they sign the contract, you now have rights to piece of document worth thousands of dollars that you can sell in exchange for an assignment fee.
The highest I’ve made on this type of deal is $82,000 on one single deal.
I average about $20,000 – $25,000 on each one and I have also made as low as $1,000 on a single deal.
STEP 3 – Sell or assign the equitable interest in the contract to an end buyer or investor.
This is also a marketing activity that involves marketing a locked contract to end cash buyers.
In this step, I recommend investing time in mastering list building and list monetization skills.
It will allow you to make money with or without closing deals.
But by the very idea of owning a growing list and already making money from it, you will multiply your chances…
…of not just closing your own deals but other people’s deals for joint venture profits.
The return on investment of your resources will basically go through the roof with this simple hack.
Have you checked out www.DealEstimator.com ?
With that being said, let me introduce you to smart wholesaling.
The 3 steps I shared with you above are the traditional real estate wholesale steps.
But just like many things 2000&digital, traditional methods will cost you more in the long run.
As entrepreneurs, we are always required to be innovative in order to maintain a competitive advantage in a saturated marketplace.
Is real estate wholesale saturated?
Well there are 500 new wholesalers joining the game in any market in any given day; Thanks to YouTube University.
If you are actively cold calling, you would have encountered a prospect who told you that you were the 10th caller for the same property that same day.
In the same token, you would have seen stack of letters in a person’s house if you are actively sending direct mail to the lists.
So do you think real estate wholesale is saturated?
The better question is “are people still closing deals?”
Yes they are closing deals but the real (for real) question is whether they are going broke doing it.
The other day, I exchanged text messages with a friend of mine in the profession.
Check it out.
“I stopped all marketing. Focusing on JVs and buying myself this year
Sick of wasting thousands and thousands of dollars a month. Need a break haha.”
That’s the reality.
The smart ones are changing strategies but some suckers are still falling for things like “driving for dollars.”
Basically, gurus are teaching them to drive around town collecting data hoping that one day they will close a deal.
Actually, some less than 0.01% do get lucky.
But as you and I know, luck and hope are terrible marketing and business strategies.
The truth is that, they can access the same data multiplied by 1,000 at less than $20 bucks.
Basically, they are hustling backwards.
So let me share a digital age hack with you for the business….
Ask yourself…
That’s what smart wholesaling is.
- (1) List Building (potential buyers)
- (2) List Monetization
- (3) Deal disposition
Click here for the next step.
Frequently Asked Questions (FAQ on Real Estate Wholesale)
What is wholesale real estate investing?
It’s the art and science of finding a deeply discounted property using mass media marketing, locking it under a purchase contract and optionally selling or assigning the equitable interest in the contract to an end buyer who will execute the contract for an assignment fee.
How to wholesale real estate step by step
STEP 1 – Find a deeply discounted property using mass media marketing.
STEP 2 – Lock it under a purchase contract
STEP 3 – Sell or assign the equitable interest in the contract to an end buyer or investor
How to setup a virtual wholesale real estate
Create strategic partnership with other real estate wholesalers, agents and investors around the nation leveraging social media, a smart phone and a laptop.
Do you need a license to wholesale real estate?
It depends on the state you are operate in and the volume of wholesale real estate deals that you are doing. Once you close your first deal, it is highly recommended to check with your local real estate laws. But at least at that point, you know it will be worth investing time and resource in getting licensed or at least partnering with a licensed agent.
How to buy real estate wholesale?
Subscribe to wholesalers buyer’s list. Simply go to Facebook marketplace or Craigslist, search the term ARV on the real estate for sale listings section and contact them and ask to be added to investor and buyer’s list. Most of them will be happy to do that.
How to start a real estate wholesale business?
Subscribe to services that offer list of potential distressed home owners such as preforeclosures, vacant properties, out-of-state owners etc, download the list of properties and contact the owners offering to purchase their properties.
Is wholesaling real estate profitable?
As usual, it depends on what school you learned your skills from. This is entrepreneurship at the end of the day. It means it attracts everyone but only few people have the skills to ensure that all marketing resources (time, money and energy) are tracked for returns. We focus on teaching hacks that beats the average person in performance. Straight forward marketing using direct mailing, cold calling can get very expensive to the extent that even closed deals are not worth the input.
Is real estate wholesaling illegal?
NO. It is never and will never be illegal. However, regulations and special licensing may be required in your state after you close more than on deal in a year.
How much money can you make wholesaling real estate?
Real estate wholesale assignment fees can go anywhere from $1,000 to $82,000 per deal based on my personal experience. There are people that have made a lot more from one single deal. My average fee is between $20,000 and $25,000.
How do I start wholesale real estate?
Subscribe to services that offer list of potential distressed home owners such as preforeclosures, vacant properties, out-of-state owners etc, download the list of properties and contact the owners offering to purchase their properties.
Do you need an LLC to wholesale real estate?
No it is not require to close your first deal. But in the long run it is advisable to use a separate legal entity as personal protection from business liability. Consult your local attorneys for best legal practises.
Is wholesaling real estate easy?
While wholesaling real estate is as simple as the 3 steps I shared with you, it is a real business and “easy” is not relevant to real businesses that product worthwhile results.
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