If you are looking for a way to make money in the real estate business, you might want to try wholesaling. According to seasoned investors, this particular method of real estate investing is perfect for beginners because it promises great investment returns without the big risks.

In the language of real estate investors, to wholesale a property basically means finding a bargain property and then selling that property to a bargain hunter. The task of a wholesaler can be summed up in three simple steps: finding a property, placing that property under contract, and then assigning the said contract to an end buyer.

You might be wondering how a real estate investor earns money by wholesaling houses. Believe it or not, a wholesaler usually earns $5,000 to $15,000 worth or assignment fees for every sale of property he has facilitated. Sometimes, the figure may fall below $5,000 or exceed the $15,000 mark. Just imagine how much an investor can earn if he has more than a few properties placed under contract at the same time.


What’s best about being a wholesaler is that you don’t have to spend a huge amount of money up front just to rake in big profits. Because you are not technically buying a property, you don’t have to face big risks or worry about losing your capital in one go. And unlike being a rehabber of properties, you don’t have to wait until the renovations are finished to make profits. Usually, a wholesaler can complete a transaction within a seven to 45-day timeframe.

Although the process of wholesaling houses seems simple, there are certain things that you need to consider guaranteeing the success of your business. The first one is to have a steady source of properties. Many investors find it hard to earn big bucks through this method of real estate investing because they can’t find properties to place under contract. Therefore, to avoid failure, you should create a list of motivated home sellers to ensure a stable source of investment properties.


If you have a seller’s list, you should also have a sound buyer’s list for how can you make money from these properties if you can’t find buyers for them? Building a buyer’s list is not that complicated. You can either put up advertisements on the paper and the Internet or tell your fellow real estate investors about the properties you want to wholesale. Always remember that the secret to creating a strong buyer’s list is obtaining as many names as possible.

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Source: articlealley.com