real estate wholesaling

5 Startling Facts About Real Estate Wholesaling

Everybody already knows that there is a great deal of money to make from investing in real estate wholesaling. But for those who are not practically doing this business, there are a few things that may startle them when they dip their feet in the waters of wholesale real estate.

1. You Don’t Need to Be Rich to Start

Though it can be a big advantage if you have the proper capital initially, to begin earning through wholesale real estate, you do not need thousands of dollars right away. You can start small and build up your investment as you progress successfully. You do not have to have the whole price of the property in your pocket, just the earnest money and even that can be done with minimal out of pocket, sometimes only $100. 

This does not mean that you should not invest handsomely in real estate wholesaling. The more you spend on building a trustworthy marketing channel for yourself, the greater will be the volume of your deals. The success in real estate wholesaling lies in securing long-term relationships with investors in the industry and developing a keen awareness around what makes a deal. Marketing being the most important attribute. 

2. It’s Not Necessary to Make the Repairs

Unlike other real estate investing income streams, in real estate wholesaling, it is not essential that you take possession of a property and then allocate resources to upgrade or renovate it before selling. You can flip the houses without losing any money if you focus on distressed properties for example. Just find someone who needs the money quickly and pair those opportunities with investors who are willing to spend on that real estate for improvements and earn more from it.


There are always investors in the market who want to earn good money by taking the worn-off or even partially destroyed properties and turn them into high-end ones by spending on them. This way they can earn good money with guaranteed profits as they have experienced contractors for these jobs as well. In wholesaling real estate, you don’t need to do the investor’s job as you just have to spot good properties for them and present the opportunity to the investor who will then spend on renovations and repairs.


wholesale real estate


3. There is More Money In It Than You Expect. 

If you look around yourselves, you will find that most billionaires have some investment in real estate and most of them are related in one way or another to wholesale as well. This is because there is a great deal of potential in this service-oriented business if you develop a good eye for a juicy deal. You can earn as much as you want at one stage if you are willing to be quick, hardworking, and grasp the market dynamics by paying undivided attention to your sellers and buyers. 


 In wholesale real estate, you keep your volume high and commissions/fees low to close as many deals as possible without losing money. At a certain point, you can spot a good deal from a bad one and know how to size up the buyer to understand how much profit margin can be earned. Once you get in touch with a wholesale buyer for instance, who has deep pockets and is willing to keep investing in good deals, you just need to maintain that relationship and apply a similar strategy again with others. When you get good at it, it can become difficult to keep track of your earnings.




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