How do you wholesale?

[Tim Woosley]

This might seem like a ridiculous question but I’m trying to wrap my head around how wholesaling works.

I know you have to find a property and there are several ways of finding properties. I understand that.

Let’s say I find a property and want to wholesale it.

What prevents someone from just making the deal without you and not paying you your wholesale fee?

Can someone unpack the process of an example of a wholesale deal?

[James Wise]

Originally posted by @Tim Woosley:

This might seem like a ridiculous question but I’m trying to wrap my head around how wholesaling works.

I know you have to find a property and there are several ways of finding properties. I understand that.

Let’s say I find a property and want to wholesale it.

What prevents someone from just making the deal without you and not paying you your wholesale fee?

Can someone unpack the process of an example of a wholesale deal?

Wholesaling as it's taught is a myth. You need a license to Broker real estate. That's all wholesaling is as it's taught in these programs, it's brokering real estate except instead of being up front & telling the distressed seller that you'll sell their property for X amount & take X amount as your commission / fee you are taught to lie to the seller & pretend you are going to buy the property while you secretly attempt to "assign" your contract.

It doesn't work. Nobody has any respect for wholesalers. Whenever a wholesaler contacts me I simply get the information about the property & reach out to the owner myself cutting the wholesaler out of the deal entirely. If you do business above board as a licensed agent that won't happen to you. The only people making money wholesaling are the guys selling you all of that education.

To be successful connecting buyers and sellers you need to have

• An in depth knowledge of the market.
• Marketing skills.
  
• Sales skills.
• Negotiation skills.
• Accurately estimate rehab costs.
• Understand how to much time it would cost to run a renovation on the properties you are presenting.

My advice get a real estate license. Way cheaper, no legal issues, more respect and there is a decent chunk of cheap or free training out there from the mega brokerages. Soak it all in while you're trying to get off the ground. It's not an easy job, 90% fail rate but it's better than the 99.9% "wholesaler" fail rate.