How does a wholesaler make money?

[Francisco Perez]

Hi everyone,

I was presented with an opportunity to wholesale a property recently. My friend wants to buy the property he is renting from now but he doesn’t have the experience in real estate or the time to handle a deal. I offered to help him out to try getting a great deal on the property before it hits the market. 

He will be financing it through a loan and I know I can get him a great deal on this. However, knowing that he will be financing the deal instead of bringing a cash offer I don’t know how I will be getting my fee at the end of the transaction.

This might not be the traditional “wholesalers” situation, but I can use my skills and knowledge to be the middleman and get him a deal for lets say $100k and offer him the contract for $105k. Finally, helping out my friend, hopefully leaving the seller happy with the deal and trading my skills/time for $5k. I just don’t know how I will get paid at the end of all of it.

I’ll appreciate any help and tips on this!