Myths and Truths: Do I Need Money to Get Started Wholesaling?

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One of the most frequently asked questions by people outside of the real estate business is this:

Do I need any money to get started in the wholesaling business?

If you listen to most of the “real estate gurus” in the business, you don’t need any money to start. In fact, you can start assigning contracts without spending any money at all, and without doing any work. What a business!

The only problem with this advice?

It’s a bunch of crap.

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The Truth

The truth is that you do need to put up a little bit of money up front to start your wholesaling business. But the good news is that you don’t need a lot – at all. You don’t need good credit, since you won’t be applying for credit or even need credit at any point in the transaction. You don’t need $100k, $20k, $10k, or even $5k.

For a very, very minimal amount of money, you can begin your real estate adventure. You do not need immaculate credit or a boatload of cash.

So What do I Need? 

The reason you don’t need credit or cash when wholesaling properties is because you don’t need to put any money down when assigning contracts. Assigning contracts is when one person (the assigner) transfers all his contractual responsibilities for a property onto another person (the assignee). No credit is needed and no money is required.

For wholesaling properties, the only thing you really need to do is find an assignee for a certain property – that’s half the battle. (Who are we kidding, it’s about 90 percent of the battle.) In this way, you’re not in the real estate business – you’re in the marketing business.

You need to be able to market the right property to the right person.

Your prosperity depends on getting a hold of people, generating leads, and making offers. Ultimately, you’re doing deals. But how can you complete deals if you can’t get a hold of people to get the deals in the first place?

A successful contract assigner will put a modest amount of money up front so he can properly market his property – direct mail, letters, phone calls. These cost a little bit of cash and time – but not a lot.

Now What Do I Do?

If money from your primary job is particularly tight, try getting multiple part-time jobs. This way, you can have multiple sources of income to cover expenses and create some seed money for your wholesaling business.

In order to be successful in wholesaling, you absolutely need to be driven and self-motivated. (Click to Tweet That!)

Take that drive, work some part-time jobs to get funds for a start up, and use that momentum to market your properties as aggressively as you can.

Consider this myth busted. Forget what other “gurus” have told you about entering the wholesaling business with no drive, no work, no money, and becoming an instant success.

The truth is that success only comes from working HARD, hustling, and taking a little bit of risk by investing a small amount of money.

Get a few part-time jobs, create some seed money, market the heck out of your properties, and congratulations – you’re well on your way to a successful wholesaling business, with hardly any money down.

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Photo Credit: TheeErin

About Author

Mike is originally from Philadelphia, PA. He has successfully built his empire from the ground up, investing in Real Estate and teaching others how to make a living doing the same through his website at . Mike currently lives and flips houses in Richmond, VA with his son.


  1. Hi Mike
    Im looking for a wholesaler in NJ who has a builder in there network. if you no of anyone? I have a 3 bed 1 bath ranch and a garage about 1200 sq feet. If they can double the house in size were looking at a ARV of 5 to 600,000. Thanks Dave [email protected]

  2. You know, I had a conversation with a friend of mine today who is out and about all the time. I mentioned to him that if he sent me pics of distressed properties along with their address and it lead to a completed deal I’d give him a birddog fee. That’s another potential way for someone to make money. One thing I would have added to your post is to look for jobs (part time or otherwise) that will benefit you in your wholesaling business one way or another. Good post though.

  3. You give some good, truthful advice about what it takes to become a wholesaler. You basically have to work very hard and always be hustling. One bit of advice that I can give from a person with a 9to5 job, a young growing family and little money I can afford do use for marketing is try and find a partner. Someone with the same goals and drive.

    I wouldn’t have been able to wholesale one single house without my partner.

  4. Another great article, Mike. Even if you walked all your flyers door to door, the printing cost can add up. There are plenty of great tools you can use, though, that are more time oriented rather than money oriented. Like a mailchimp campaign with local real estate agents and direct buyers on your mailing list. These direct buyers could be found on property profile websites by searching properties just sold at the county course houses.

  5. It’s so true that you need to be driven. I’m working full time while getting my business off the ground, and it’s not easy to work all day…. then go home and work some more. You’re always trying to figure out how to get it all done and keep that 9-5 until you’re ready to let it go. So what am I doing this Sunday? Sitting at my computer and going through my to-do list and re-writing it for next week. What did I accomplish? What could I have done better?

    You do need money for marketing and to grow your business you will squeeze your pocket book. How much can I spend right now? When I do get a deal, how much will go back into the business? How many dollars do I need coming in on a regular basis before I can hire out some of the work? You’re always trying to figure out how to go from where you are to the next level.

  6. I totally agree with this article, it took me two years of wasting time trying to market my business on one income and it just didn’t cut it, I had to suck it up and start a carpet cleaning business to generate income for my wholesailing, I advise you either start a small side hustle or get a part time job, it sucks but its part of getting started.

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