How To Wholesale Real Estate (2019) and Crush It! - Simple Step by Step

Written by Jim G. on June 25th 2019

2019 is looking brighter than ever and what better way to get into it than establishing a great cash source on top of your current income! Real estate is looking stronger than ever and is projected to grow more in the year to come.

If you’re new to real estate and don’t have any experience when it comes to acquiring and selling properties out, then this article really is for you. All the basics are set and laid out.

Here are the simple steps to follow to help you establish yourself as a wholesaler. 2019 is a great year to start scouting out those dream projects and we’ll walk you through on how to do it!

The new year usually comes with resolutions and quick make-money schemes. And who’s to blame? The new year is the perfect time to get your goals aligned and to start making plans for the future. One of the quickest get-rich schemes is to actually get into the real estate industry. Although that may be something that sounds a bit daunting and intimidating in the beginning, what you need to understand is that you don’t have to play hard ball right off the bat. One way for you to be able to ease yourself into the real estate industry without bleeding your finances dry is to get into wholesaling.

Wholesaling houses is great for people who are just getting started because it requires minimal cash flow as well as skillset. Don’t be fooled though, it will still require you to spend a lot of time and a minimal amount of resources to get you up and running, as with how business and cash flows work. What you can be rest assured of though is that it won’t cost you as much as the other business start-ups out there. More than that, if you have people skills on the side, this is something that can really turn out to work to your advantage at the end of the day.

What is wholesaling? It’s basically the process of acquiring properties under market value, or at a lower cost than their actual originally appraised value with the intent of getting them under contract and selling them out to other investors or interested buyers. With the right kind of timing and with a little bit of background research, you just might hit your first gold mine which can then get the ball rolling for you as you move on from one property being flipped to another. You’ll get your groove in no time for as long as you have the right market research and a few connections on the side. Profits can range anywhere from $1,000 upwards to $20,000 or more depending on how the odds go for you. Here are a few steps to get you started.

Set Up Your Short Term Goals.

Setting up what your short term goals are in the first place is important. Think of them as your baby steps towards your big leap towards wholesaling success in real estate. Here are the first 4 things that you need to get under way.

Real Estate Investing Team. You need a team of professionals to get the job done and to make sure that your transactions go on without a hitch. This isn’t the type of thing that you can pull off alone at the end of the day. you are going to need a property finder, a professional who will be able to appraise properties you are looking at within short notice, a contractor who will take care of any repairs needed on the properties you need to flip, and a title company who will help you with the documents, contracts, and other legalities required to see the deal go through until the end.

Set up a blog and a website. You need to make sure that you are able to establish some sort of presence not just in your local area but online as well. People usually run a quick Google search of properties within a certain location before they make the move so ensuring your visibility in that aspect will bring in more potential leads for you at the end of the day. At the same time, if people are planning to put their properties up on the market, online sources are also the first things they will check. Most of the blogs and websites these days have drag-and-drop functionalities so you don’t need programmer-level skills to get you up and running. There are also a lot of sites that you can source out to if you need help in that area.

Acquire the first property to invest on. This can be tougher than it sounds. You are going to need a really adept and skilled property finder to help you out with this. Some door-to-door inquiries might need to be made. You need to establish yourself online. You need to work on growing your pool of potential properties to look at and learn how to categorize them accordingly so you know which ones to prioritize as your potential first-buy.

Lease out the property to establish a cash flow. If you can’t dispose of a property that you acquire right away, there’s no reason why you should just be sitting on it for months on end and cripple your cash flow. You can put it out on short-term leases to get your cash flow going while you’re staking out your buyers over time.

Figure Out The Basics In Wholesaling. Wholesaling is pretty simple as a concept. Here’s the three-tiered flow to how it usually goes when you plan on wholesaling a property.

Find a property. Without a property to flip, there really isn’t anything for you to gain some sort of profit from so this is the first main step to wholesaling, when it all comes down to it. Take your time and don’t rush through any purchases without considering all of the variables. The most ideal scenario would be for you to take in a property that is around 50% under market value to give you enough room to make profits off of it once you put it on the market.

Get the property under contract with the seller. The next step to finding that perfect property is to getting the sellers to trust you enough to get the property under contract with you. This is where your people skills come into play. Most of these people who are putting their properties out under market value are in distress so make it a point to really show them that you have their best interests at heart on top of the possible gains you can get out of the deal.

Sell to another investor or buyer. There are two ways that you can go about with this. Wholesaling, in essence, is basically just flipping the property over to interested investors with little to no work required from you. however, if you have the skillset to work on a fixer-upper, you might get a little more profit out of it because it means you can sell out a property at a higher rate once its appraisal goes up from the repairs and maintenance done on the property.