Expected expenses with wholesaling?

[Matthew Charron]

Hello fellow BP members, Just a quick question about wholesaling and the expenses that go along with it. Now I know if you're doing any kind of marketing you'll have to spend some money. I know you'll need an attorney to draw up your contract, but is that a one time fee or must they be involved in every deal somehow that will cost you? I also know you have to put money down to put the deal under contract as well. Is there anything else that goes along with this? Thank you.

[Van Blackman]

Hi @Matthew Charron!

In conjunction with the money you'll be putting out for marketing, I would recommend you take a little time, effort, capital and invest that towards an actual real estate license in your state, if you don't have one already. That will do a few things for you:

1. First, it will give you access to your local MLS. If you don't have access to that, you'll most likely be relying on Zillow, Realist, or any other website that will provide some* market information for you to use when trying to evaluate your deals. If you're licensed, you'll be able to access the MLS anytime you want and you'll know exactly what is active, pending, and sold in ANY subdivision. This will help tremendously.

2. Second, with MLS access, you'll have access to ALL of the other agents in your area. Call them, build relationships with them, and have them bring YOU deals! I've been very successful with this.

3. Third, if you have access to the MLS, you can buy houses off of the MLS. You might not always find the best deals there, and it certainly shouldn't be your only source, but it will get you started.

4. Lastly, it will set you apart from a lot of other wholesalers out there that are NOT licensed. You would be amazed how far something as little as that will take you. You're more credible because of it. You'll want every leg-up you can get. It's too competitive out there.

*BONUS* - if you have an active license, other agents do not have to accompany you to their listings. You can go without them. That will save EVERYONE time. 

Hope this helps! Would be happy to answer any other questions if you have them.

Let me know if you're ever looking for deals in Chicago!

Best,

Van