Investing Trends

So, you are getting started in real estate investing and have selected wholesaling as your entry into the exciting and lucrative real estate investing business. Congratulations.

Wholesaling is an outstanding, low risk way of learning your local real estate market, mastering finding motivated sellers and earning a significant income while learning the real estate business.

So, here are 6 steps to a six figure income as a real estate wholesaler.

1. Establish yourself as a real estate investor

The first step is to get set up and in business as a real estate investor. I do not recommend spending a lot of unearned money on your business as first, but it sure helps to have some of the basics when you first get started.

First, get some business cards. You do not need very expensive ones (at first, or really ever), but you will want a professional way to let people know that you are in business and a means for you to pass on your contact information. That leads into the next thing you need to get started, a business telephone.

You do not need to get a separate line into your house or buy a second cell phone, but I might suggest that you change the message on your cell phone number to a business voice mail. Something like this is fine, "Thank you for calling Susie Smith's Real Estate Services. Unfortunately, we are working with other clients right now or are otherwise unavailable, please leave a message and we will return your call as soon as possible."

Once you have your business cards and cell phone, you have the bare minimum tools you will need to get started as a wholesaler.

2. Find motivated sellers

The next step is where you will be spending the majority of your time as a new wholesaler. I am a huge believer in spending money on advertising to find deals, but you can find deals through various free methods like searching the Multiple Listing Service with a real estate agent or calling on for sale by owner signs and ads in the newspaper or websites.

3. Analyze deals

Once you find deals, you will need to analyze each one to see if it really is a great deal that you can wholesale. If it is, then continue to the next step. If not, then you will need to go back and find more motivated sellers.

4. Negotiate deals

You should be negotiating from the first contact with the motivated seller by building up rapport and common ground, but when you have analyzed the deal and are trying to put it all together, your negotiation skills come to the forefront.

5. Control properties

Once you have negotiated a great deal, the next step is to put it down on paper so that you have control over the property and can legally resell the deal for a profit.

Most wholesalers use one of two things to control a property: an option or a purchase and sales contract. You can get both forms from your local office supply store or by searching the internet. You might also be able to get the paperwork you need from a real estate agent especially if you are working with them to find the house and they will be paid when you buy. As you do more deals, you will probably want to consider upgrading to forms that are specifically designed for what you are doing in your business and were written for your particular market.

6. Liquidate properties to collect your paycheck

Once you have control of the property, it is your job to liquidate them and collect your paycheck. Your ability to quickly find another investor to flip the deal to or a retail buyer to purchase the property is a huge factor in how successful you will be as a real estate wholesaler.

Rinse and repeat this process as often as you can to earn a huge income finding great deals and quickly liquidating them as a real estate wholesaler.