BiggerPockets

Do I Need Money To Get Started As A Real Estate Wholesaler?

The answer to today's question is mostly a BIG NO! Well actually, you will need a very small earnest money deposit of $50 to $100.00, or less, and that's it! And the reason for this small deposit is just to make the sales contract between you and the motivated seller legal and binding.

In most States, contract law has it that currency of some denomination must change hands between the buying and selling parties, along with the signed contract, in order for the real estate sales contract to become legally binding.

But aside from this small deposit, this is the only money that you will need! Why would a seller accept such a small deposit, you may be asking? Because this seller is a motivated seller!

Motivated sellers do not ask a whole lot of questions, they normally just want out of a pressure, time sensitive, bad situation fast, and are willing to do just about anything to achieve that goal! I have put more properties under contract with just 1 US dollar more times than I can remember!

Remember, when you are a wholesaler of real estate you are NOT the end user of the property that you are putting under contract, EVER! So, you have none of the usual holding costs, closing costs, contractor/repair costs that your typical real estate investor must deal with on most deals.

You are only owning the property for a few minutes. And if you are assigning your contract at closing, you NEVER own the property at all, EVER! So, you need no money (other than your small contract deposit $1.00 to 100.00) to make incredible money wholesaling properties!

I have done this over 450 time over the last 7 years, this exact same way, so I know what I'm talking about. My average profit spread on each wholesale deal is between $5,000.00 and $7,500.00. I average only a few hours of my time per deal, and do multiple deals month after month.

There is NO other investing method that I know of, where, for $100.00 or less YOU can get this kind of return for such a small amount of time and money, NOWHERE ELSE!

So the answer to today's question: "Do I need Money to get started in wholesaling real estate" is NO! And if you don't have at least $1.00 to $100.00 to invest to sign the contract, BORROW it from someone! Your going to make $5k - $7.5K on the deal, and you will surely be able to pay that person back when you close on the deal!

Comments

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  Langston Moore — over 2 years ago

  With wholesaling do you have to deal with mostly fsbos? Can you wholesale bank REO that are listed with a Realtor?

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  Jeff Z — over 2 years ago

  How do you find the deals without spending money?

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  Brian Levredge — over 2 years ago

  Nice series of articles. Very informative.

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  Darius Greene — about 2 years ago

  i have been reading this rich dad guide to investing book and also have the contracts i just dont understand the but i am trying to do my first deal . Have any advice?

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  Darius Greene — about 2 years ago

  i have been reading this rich dad guide to investing book and also have the contracts i just dont understand the but i am trying to do my first deal . Have any advice?

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  Favian Martinez — over 1 year ago

  so what's the average fee for the title company?