FAQs

faqs

Q:What is Wholesaling?
A:Wholesaling is similar to flipping except that the time frame is much shorter and no repairs are made to the home before the wholesaler sells it. A real estate wholesaler puts a property under contract with a home seller, markets the home to his potential buyers, and then assigns the contract to the buyer.  A wholesaler will also buy a property with his/her own cash, or some type of transactional funding and then sell that property to another investor at a higher price either the same day or within a short time frame.
Q:Do I need Money or access to Capital When starting out?
A: When wholesaling a property from an individual seller you do not need a lot of money to start.  You will need some money for marketing purposes, and for earnest money deposits.  If you are assigning contracts you will not need the money to purchase the property.  If you are going to be wholesaling Bank owned properties you will need access to transactional funding like Freeland funding.
Q:How Much Money Can I make wholesaling?
A: Everyone is different and every real estate market is different.  With wholesaling you can make as much or as little as you would like it all depends on how much time and effort you put into the business.   My average wholesale fee is around $7,000.   If you only do one deal per month and average around $7,000 per deal you could potentialy make $84,000 per year.  But this will depend on your area, amount of deals you can find, amount of work put in and various factors.  
Q: Do I need to have good credit in order to wholesale houses?
A:You do not need to have good credit in order to wholesale properties.
Q: Do I need to be a Licensed real estate agent to wholesale?
A: You do not need to be a licensed realtor in order to wholesale property or to even buy and sell houses.   You will need to make sure you follow all of your local State laws in regards to buying and selling property.   Some start real estate boards are cracking down on wholesalers illegally wholesaling property.   Make sure that you know your rules and follow them.  For example you can not Market a property or a contract that you do not own or have an equitible interest in.
Q: Do I need to have a Buyers list before I start wholesaling?
A:

When wholesaling houses you will need to establish some sort of buyers list but when first getting started you do not need to have a buyers list.   If you have a good solid deal under contract and you market that contract correctly you will find buyers.   Right now there are thousands of buyers in markets all over the country looking for good solid deals and are ready to buy.  

Q: What Happens if I can not Find a Buyer before Closing?
A: When ever I put a proeprty under contract wither I am going to buy the house as a rehab, rental or wholesale deal I always put in the contract that it is subject to an inspection.  That way I give myself 14 or so days in order to find a buyer to assign my contract to.  Or If after my inspection I find out the property needs more work than I initially anticipated I can easily cancel my contract and get my earnest money back. 
Q:What Happens if the Seller Backs out of the Deal?
A: If a seller backs out of a deal you can either sue them for performance or you can just let the deal go.   Depending on what the situation is with the seller is the way you should proceed.  If the seller is backing out because of another real estate investor trying to go behind your back and offer them a little more than I would challenge that seller.  But if the seller decided they just dont want to sell then I personally just let it go and let them walk away from the deal. 
Q: Can you wholesale a Bank Owned property?
 A: Yes you can wholesale a bank owned property.   You can not assign a bank owned contract but what you can do is double close.  This is where you buy the property using transactional funding and then re-sell the property the same day or a few days later to another buyer.
Q: What is the Number one Reason Some wholesalers are successful and others are not?
 A: The number 1 reason why some wholesalers are successfull and some are not is because some take Massive action and others do not.    The people who I see that are successful are the wholesalers who do not quit and just keep working hard every single day, doing what ever it takes in order to find deals and grow their business.    Another reason why some are successful and some are not is because of education.   If you want to get a Jump on other new wholesalers you will need to make sure you are properly educated.   

 

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