Learning the Real Estate Industryand Other Benefits to Being a Real Estate Wholesaler
If you’re into home improvement you might have tinkered with the idea of flipping houses for a living or a side-hustle. But what if you know nothing about real estate? Working in the business of building or fixing houses is one thing, but flipping, buying, and selling can be a whole different ball of wax if you don’t know anything about the real estate industry.
Thankfully, there are ways to indoctrinate you into the real estate business without investing a ton of time on education or a load of money to start. Take real estate wholesaling, for example. This is a great way to make money while learning the ropes of house buying and selling. Read on for what real estate wholesaling is and how it could prove to be a beneficial career or side job for you.
What Does a Real Estate Wholesaler Do?
At its simplest, real estate wholesaling is about finding smashing deals on houses, landing a contract on the home, and selling that purchase contract to willing property investors or qualified buyers.
Let’s say you find a fixer-upper on the market. As a wholesaler, you’ll execute a contract to purchase the home from the seller. From there, you find a qualified buyer and sell them the purchase contract. Money is made by a commission for a contract sale and/or a finder’s fee.
What it Takes to Be a Real Estate Wholesaler
Surprisingly, it takes very little to start doing business and making money as a wholesaler. This is one of the benefits of this service position in the real estate industry. However, you do need determination, a self-starting attitude, and time to do a lot of research in the housing market.
You also need to build a solid network of contacts, leads, buyers, and sellers. Establishing a community of potential buyers and sellers can be done in many different ways. For instance, you can make face-to-face meetings with potential leads. Or, create a wholesaling cold calling script when you introduce yourself to potential buyers on the phone. You can also utilize social media to drum up leads. Whichever strategy you employ, it’s crucial to build a strong client and lead list to see success as a real estate wholesaler.
The Advantages of Being a Real Estate Wholesaler
We’ve gone over what a wholesaler is, and highlighted what it takes to become one. Now, let’s get to the good stuff. Read on about the benefits of becoming a real estate wholesaler.
Get Your Feet Wet Without a Hefty Investment: As mentioned, the prospect of wholesaling real estate is a great way to familiarize you with the real estate industry without spending a ton of time or money in the process. You don’t need a license or a college degree to wholesale. Unlike real estate agents and brokers, who have to go through training to obtain a license, a wholesaler can avoid that time and expense altogether. Furthermore, you don’t need to pay broker or realtor membership fees as real estate agents are required to do.
What’s even better, you don’t need a physical office or storefront to start your wholesaling business. Much of the tools you need are at your fingertips, such as a laptop and an internet connection. This allows you to work from home, further reducing startup expenses. If the idea of making money in the real estate industry from the comfort of your own home sounds appealing to you, check out this enlightening article about Virtual Wholesaling: How To Flip Houses From Home for insightful tips on how to make that a reality.
High Income Potential: Perhaps you’re familiar with the lucrative potential of flipping houses. Well, real estate wholesaling can provide just as much (if not more) earning potential with a fraction of the sweat equity involved with home renovation.
In addition to learning the tricks of the real estate trade while you’re wholesaling you could be making a tidy profit in the process. On average, you could earn $5000 per commission, and that amount can increase if you include a finder’s fee. The more purchase contracts you sell, the more potential you have for significant earnings.
Is Real Estate Wholesaling Right For You?
Only you can answer that question. However, it should be clear working as a wholesaler may be a good money-making option if you’re interested in real estate. As a wholesaler, you have the opportunity to learn more about the housing market, meet new people, make your own hours, and earn good money – all with a minimal startup cost.
Should you choose to pursue this exciting aspect of real estate, remember your success is directly linked to your motivation and determination. As with any solo endeavor, nothing is easy, but with the right focus and devotion, becoming a real estate wholesaler could reap tremendous rewards.