5 Common Questions on Wholesaling Real Estate for Novices

Wholesaling real estate can be a great way to get started in the real estate industry without investing a large sum of money. It entails locating a distressed property, putting it under contract, and then profitably selling the contract to a real estate investor. 

Mind you, it is not easy as getting bulk toys, wholesale appliances, or any other wholesale goods that you are familiar with in the industry.

If you’re new to wholesaling real estate, you might also have a few questions about the process. As a result, we will address the five most frequently asked questions about wholesaling real estate for newbies.

Top 5 Common Queries for Wholesale Real Estate Process

1. What is Wholesaling Real Estate?

Wholesaling real estate is the process of finding a distressed property, getting it under contract, and then selling the contract to a real estate investor for a profit. The wholesaler finds a property that is below market value, negotiates a contract with the seller, and then assigns that contract to a buyer for a fee. The wholesaler never actually takes ownership of the property, but instead makes money from the difference between the price they paid for the contract and the price they sold it. In short, they only want a little markup on the real estate for sale.

2. How do you Find Distressed Properties?

There are several ways to find distressed properties, including driving for dollars, doing online research, and networking with other real estate professionals. Driving for dollars involves running around neighborhoods and looking for properties that appear to be vacant or in bad shape. Next is online research which involves searching for properties on websites such as Zillow, Realtor.com, and other real estate platforms in your target area. Last is networking with other real estates professionals such as real estate agents, property managers, and contractors which can also be an effective way to find distressed properties.

3. How do you Get a Property Under Contract?

Once you find a distressed property, you will need to negotiate a contract with the seller or the owner. This method involves making an offer on the property and agreeing to the terms of the sale. You can use a real estate attorney or a real estate agent to help you with the contract negotiation process. Once you have a signed contract, you can then market the property to potential buyers.

4. How do you Find Buyers for the Property?

There are several ways to find buyers for the property, including networking with other real estate professionals, advertising the property on websites, especially on social media platforms, and attending real estate networking events. You can also build a list of potential buyers by attending auctions and sheriff sales, where real estate investors often congregate and start looking for buyers there.

5. How Much Money Can You Make from Wholesaling Real Estate?

The amount of money you can make from wholesaling real estate depends on several factors, including the price of the property, the fee you charge for assigning the contract, and the number of deals you do. As a beginner, you can expect to make anywhere from a few thousand dollars to tens of thousands of dollars per deal and that depends on the negotiation as well. However, it’s important to remember that wholesaling real estate is not a get-rich-quick scheme, and it requires hard work and dedication to be successful so you need to understand and learn more about it.

In a Nutshell

Real estate wholesaling can be a profitable and rewarding way to get started in the real estate industry. As a novice, educating yourself on the process, locating distressed properties, negotiating contracts, and establishing a network of potential buyers is critical.

You can become a successful property wholesaler and build a financially viable business with the proper methodology and dedication.