Wholesaling is the Key to Success in Real Estate Investing

I have touched base on wholesales before however I want you to understand how powerful this niche in real estate investing really is. Does the term “fast cash” catch your attention? Wholesaling may be one of the most profitable niches in real estate in terms of hours worked versus the size of your paycheck. The standard wholesale check that I earn ranges from three thousand dollars up to twenty thousand dollars. However, on average they are between five and ten thousand dollars. Here is what makes this business so lucrative. A typical wholesale deal takes less than a full day of work to complete. I take a walk through the house, meet with the homeowner, do some research at the city hall and on the internet, and call people on my buyer’s list to see if they want the house. I can do all this within a few hours. If I earn a wholesale assignment fee in the amount of ten thousand dollars and it took me four hours of actual work to complete the deal, I am being paid quite well. You don’t have to be a math whiz to realize I just got paid twenty five hundred dollars per hour. Now how many of these deals do you need to do each year to be a full time real estate investor?

Here is another reason why wholesaling is such a great business. You do not have to be a genius with a high degree of education. An amateur can do this with a little training. This business creates an opportunity for literally anybody to make a fortune in real estate.

If you are looking to get started in this business there are a couple key elements you have to understand:

1. Networking: In order to be successful, everyone has to know that you buy and sell houses. Don’t try to run your business under the radar. People must know you as the person who always has great deals for sale. You want them to come to you. You can start by attending your local real estate investment clubs. Every state has one. They typically meet once a month and the place is full of investors. Not a bad place to build a buyers list.

2. Research: You must have a firm grasp on real estate values and the average cost of repairs. This will come with experience, however you can get pretty good at it just by doing research on your local town’s property values. I am able to pinpoint exactly what an investor will pay me for a house. I do this by knowing how much money the repairs will cost them and how much they will be able to sell the house for once they complete the repairs. This is how I determine the size of my finder’s fee. If there is a large spread of equity I will be charging a larger fee.

Here is the best part. You can never be overwhelmed with deals because you are not buying houses and you are not rehabbing houses. You are flipping contracts. You have almost zero overhead costs to run your business.