Wholesaling - Fact From Fiction

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Hello everyone,

I've been doing my research on Wholesaling for a couple of months now. I've been told that this is a great way to get into Real Estate with little money or no credit and not having to risk anything. Considering that I don't have a lot of money to spend, I would like to flip wholesale deals without using much money, or any money at all if possible. During my time of research, I've spoken with RE Agents and Realtors in hopes of getting their assistance. In doing this, I've come across lots of discourages comments from people. I've also spoke with investors who say that if you want to Wholesale, then just stick to FSBO. I'm not the kind of person to let a few unpleasant words stop me. So, I'm here to ask if some of you could separate the fact from fiction on some things that I've been told.

1. In order to wholesale an REO, you will need earnest money upfront ($500 and up).

2. When wholesaling, the banks will do everything they can to NOT pay the wholesaler.

3. To do any wholesale deal, even a FSBO, there's a chance that you'll need earnest money upfront ($500 and up).

4. There's no way to write a purchase contract to lower the amount of earnest money paid (to $10 for example) or to delay payment of earnest money.

5. You need to be able to show that you have the funds available in order to put a property under contract.

I would appreciate it if someone could offer me some solutions to these statements.
Thanks in advance.

[Jesse Ramirez]

I second the answers above.

With that said, in no way shape or form should you let these answers slow you down. All it takes is a couple deals to get your marketing up and rolling.
As a matter of fact, you can partner up with another wholesaler or investor and have them fund your earnest monies in exchange for a split of somekind.

Good luck,
Jesse