Many new real estate wholesalers are curious about how long it will take to get their first paycheck. From my experience you can be getting paid in as little as two weeks depending on how quickly that you build your buyers list. Once you have a good buyers list in place then you are ready to start making some serious money. Here are some of the variables that will effect the speed that you can expect to get your first pay check from real estate wholesaling.
1. Type of financing your buyers are using- The type of financing that your buyers are using will often dictate the speed of closing the deal.
- Cash buyers- I have seen cash buyers close in as little as one week, but typically expect them to close in two to three weeks.
- Bank financing- I usually plan on deals that will be financed through the bank to take around 30-45 days to get to the closing table.
- Seller financing- I have seen seller financed deals close in as little as one week, but often times closings will occur in two to three weeks.
2. Time to get a clear title- If a home has a paper trail that is free of liens, encumbrances, and other title issues, then title policies can be issued to your buyer in as little as three days. On the other hand, I have seen homes that took over 30 days to get the title cleared. In a case like that, patience is a must.
3. The seller’s time line- Some sellers will want to close as soon as possible and others may want to take their time. Typical closing times are three to five weeks from the day that the contract is signed. The main reason for sellers taking extra long to close is that they do not have another home lined up to move into.
4. The buyer’s time line- Many investors will try to close as late as the seller will allow. This is especially true of other wholesalers because they want as much time as possible to line up another buyer for the property.
Those are the four most critical factors in determining how fast you will be able to make money wholesaling real estate.
Eric Medemar is a Real Estate Investor/Consultant from Grand Rapids, MI. Be sure to get your Free Guide To Real Estate Wholesaling. You can also view Erics wholesaling real estate blog here. Eric is also a contributing member to The Real Estate Investing Forums at The Millionaire University
