How to Make $10K a Month Wholesaling Real Estate

Wholesaling real estate is an investment strategy that has gained popularity due to its low barrier to entry and the potential for significant profits. If you're looking to dip your toes into the real estate market, wholesaling could be a great way to start. In this blog, we'll explore how you can make $10,000 a month wholesaling real estate.

What is Wholesaling?

In simple terms, wholesaling involves finding a distressed property, getting it under contract, and then selling that contract to an end buyer without ever taking ownership of the property. The profit comes from the difference between the contract price with the seller and the amount the end buyer is willing to pay.

Steps to Making $10K a Month Wholesaling Real Estate

1. Education and Research

Before diving in, it's crucial to educate yourself about the wholesaling process, real estate contracts, and market conditions. Attend seminars, read books, and follow successful wholesalers online. Understanding the legal aspects of wholesaling is also essential to avoid any potential issues.

2. Find Distressed Properties

The key to successful wholesaling is finding properties that are undervalued. These properties are often distressed – either physically, financially, or both. You can find these properties through various means like driving for dollars, direct mail campaigns, networking, or using online platforms.

3. Analyze the Deal

Once you've found a potential property, you need to analyze the deal. Estimate the After Repair Value (ARV) and the repair costs. The general rule of thumb is that the maximum allowable offer should be 70% of the ARV minus repair costs.

4. Negotiate and Secure a Contract

After determining a fair offer price, negotiate with the seller to get the property under contract. Ensure the contract includes an "assignability clause," allowing you to transfer the contract to another buyer.

5. Find an End Buyer

Now it's time to find an end buyer, usually a real estate investor or rehabber. Use your network, real estate investment groups, or online platforms to find potential buyers.

6. Assign the Contract

Once you have an end buyer, you assign the contract to them for a fee. This assignment fee is your profit and ideally should be enough to hit your target of $10K.

Scaling Up

To make $10K a month consistently, you'll need to scale up your wholesaling business. This may involve hiring a team, automating processes, and continually expanding your network of sellers and buyers.

Conclusion

While wholesaling can be a lucrative real estate investing strategy, it requires hard work, dedication, and a good understanding of the real estate market. With the right approach and mindset, you can potentially make $10K a month wholesaling real estate. Remember, every wholesaler's journey is different, and success may not come overnight. Stay persistent, keep learning, and the results will follow.