Wholesaling is connecting a homeowner that NEEDS to sell their home at a discounted price to the right buyer.
FIRST,
you will negotiate a price that is low enough but still gives the seller what they need. Then, you sell those TERMS to a buyer that is looking for that type of property. You are assigning your contract to the buyer. You get paid by selling the contract to that house.
We
will cover seller needs, terms, contracts, and sales; everything to execute a deal correctly and profitably. Wholesaling is a great way to start learning real estate while making money.
Why do most people fail?
Wholesaling is a very low barrier to entry in the real estate investment space.
Many “GURUS” and “Facebook Investors” sell the concept of wholesaling as "you can do this with very little to no money and make $20,000 per month!". This makes it very attractive for A LOT of people.
But, is this true?
Allow us to answer this question with another question. If it were true don’t you think EVERYONE that started in real estate investing would be making $20K/mo?
The short answer to this being true is… HELL NO!
When people are telling you this BS always ask yourself what their interest is in you getting into real estate.
It’s usually one of the following:
They’re trying to sell you coaching and/or training
Get you to work for them for FREE (We’ll cover this later)
They were sold on it. Although they have seen it’s not true if they can convince you it’s true then they feel it wasn’t a huge mistake.
So then, what is the purpose of wholesaling if it’s not to get rich quick with no money and little work?
Understanding the purpose of wholesaling
So, the biggest question is WHY wholesaling. Now, we're sure if you’re reading this, it’s because you probably have an idea of what it is and why you think you want to do it. But, allow us to really show you the TRUE purpose of wholesaling.
Wholesaling to us is like driving an Uber. Uber was created to put some extra cash in your pocket but not really for replacing a job or even as a career. Wholesaling to us is the same.
Wholesaling is a way to monetize on leads you come across from motivated sellers. While it does pay a lot better than Uber, it is very volatile and you can’t really depend or count on always making the same amount of money consistently.
We started our company PRYME Homes through wholesaling. If we would have stayed in that space two things would have happened. One, in order to grow or even sustain it, we would have had to take advantage of new investors by selling properties that were NOT deals and taken advantage of homeowners who perhaps really needed that extra $5,000 to move on. Which is what many large wholesaling companies do. Or two, we would have gone out of business. Wholesaling is a great way to get to start learning real estate. Please note that we say LEARN and not MAKE MONEY.
What you will learn by wholesaling
You will learn different strategies on how to make money. You will learn about different types of buyers ( fix and flip, buy and hold, owner finance or retail) and how to structure a deal depending on the type of buyer your working with.
Understand the market you’re in. The last thing you want to do is flip or buy a rental in a market that is not currently suited for that.
How to build a STRONG and dependable network. The depth and quality of your network are going to determine the success you will achieve in real estate.
