Real Estate Wholesaling Made Simple

I’ve been accosted in bathrooms, backstage at my events, family reunions, and even sporting events by people dying to know… ”What the heck is real estate wholesaling”

Here’s what I tell them…

As a real estate wholesaler, I make all my money by locating properties priced between 30%-75% of the current fair market value, then selling the contracts on those properties to other buyers.

To give you a better idea of how wholesaling works (and why it works so well) here’s an example of recent deal.

1.  I found a motivated seller on Craigslist who had recently been divorced and staying in his home reminded him of his EX,  so he was willing to sell his home for about 60% of Current Fair Market Value.

2. This deal was a true no brainer because before I even met with the seller,  I’d already spoke with a buyer who expressed interest in purchasing bargain properties in that area.  She was looking for homes that required only light renovation that she would do, then later offer them for sale at 95% CFMV on lease option.

3.  I met the seller at his home and we sat down and wrote up an offer.  I explained to him how either I would be buying it or this other partner I had would be buying it.   So with that in mind, the contract signatures would read “Eric Medemar and or assigns”.

4.  The seller and I settled on a price of $63,000.  Then later that night my buyer and I sat down and she agreed to purchase the home for 76,000.   Which ended up netting me about $12,000 on the deal.  I realize that’s not “Big money” to some people, but I’d say I did pretty well for working all of about 2 hours.

5.  Here’s how we did the paper work and closed it.  Since I was working with a cash buyer (don’t worry cash buyers are a JOKE to find if you’re willing to take the time to learn) it made the deal even easier because all I needed to do was sign an contract assignment form.  For that privilege alone,  the buyer paid me the difference between our decided price $76k and the original contract price of $63K.

Bottom line, real estate wholesaling is working as the middleman between desperate sellers who need buyers and house hungry buyers who need desperate sellers.

Another way to look at wholesaling is as a “Real Estate Matchmaker”, because that’s how you’ll make all you’re money… matching up house hungry buyers with desperate sellers.

That’s why most of my students started wholesaling in the first place,  is because rather than adding value by actually “Doing Work” on a property to flip (which also means you’d have to buy it and risk your neck).

Instead add value (and get paid according to that value) by establishing relationship with investors who want to save money on property then putting them in touch with property they can save money on.  Can you see why real estate wholesaling still works so well?

Have fun,