{"id":68377,"date":"2019-04-24T13:35:10","date_gmt":"2019-04-24T18:35:10","guid":{"rendered":"https:\/\/www.zilculator.com\/blog\/?p=68377"},"modified":"2021-01-24T06:58:45","modified_gmt":"2021-01-24T11:58:45","slug":"a-beginners-guide-to-wholesale-real-estate","status":"publish","type":"post","link":"https:\/\/www.zilculator.com\/blog\/a-beginners-guide-to-wholesale-real-estate\/","title":{"rendered":"A Beginners Guide To Wholesale Real Estate"},"content":{"rendered":"\n<p>For <a href=\"https:\/\/www.zilculator.com\/blog\/are-15-year-mortgages-better-for-new-investors\/\">new investors<\/a> who are making their way into the world of real estate, wholesaling is a key strategy. Even investors who do not have a sizable amount of capital on hand can still benefit from <a href=\"https:\/\/www.zilculator.com\/blog\/wholesaling-for-beginners-how-does-it-all-work\/\">wholesaling<\/a>. This strategy does not require very much experience either. <\/p>\n\n\n\n<p>Those who are not familiar with this <a href=\"https:\/\/www.zilculator.com\/blog\/6-tips-for-cutting-real-investment-costs\/\">investment strategy<\/a> will want to take a closer look at the following guide. Building a wholesaling business has never been easier. These tips and pointers are designed to further simplify things. <\/p>\n\n\n\n<div id=\"toc_container\" class=\"toc_white no_bullets\"><p class=\"toc_title\">Contents<\/p><ul class=\"toc_list\"><li><a href=\"#What8217s_Wholesale_Real_Estate\"><span class=\"toc_number toc_depth_1\">1<\/span> What&#8217;s Wholesale Real Estate?<\/a><\/li><li><a href=\"#Can_We_Wholesale_Without_Putting_Money_Down\"><span class=\"toc_number toc_depth_1\">2<\/span> Can We Wholesale Without Putting Money Down?<\/a><\/li><li><a href=\"#What_About_The_Legal_Aspect\"><span class=\"toc_number toc_depth_1\">3<\/span> What About The Legal Aspect?<\/a><\/li><li><a href=\"#How_To_Remain_On_The_Right_Side_of_the_Law\"><span class=\"toc_number toc_depth_1\">4<\/span> How To Remain On The Right Side of the Law<\/a><\/li><\/ul><\/div>\n<h2><span id=\"What8217s_Wholesale_Real_Estate\">What&#8217;s Wholesale Real Estate?<\/span><\/h2>\n\n\n\n<p>This term is used to describe great real estate deals\nthat are presented to various investors. The fee that is offered to those who\npresent the deals is not quite the same as a finder&#8217;s fee but the principle is\nrelatively similar. There is more paperwork, though. This step is designed to\nmake the process as legal as possible.<\/p>\n\n\n\n<p>The concept can be confusing to some. It is rather\nsimple. Let&#8217;s say that John comes into a property that costs $50,000. He is\ntold about the property by Jane. Jane wants to receive $50,000 for the property\nand draws up a contract with John, stating that the property must be sold to\nhim (or someone else) for that price within a certain time period.<\/p>\n\n\n\n<p>In the meantime, John contacts his buddy Tommy. Tommy is an experienced house flipper and the numbers are appetizing to him. He strikes a deal with John to purchase the property for $55,000. John then pays Jane for the property and pockets the additional cash. This is his wholesaler&#8217;s fee. <\/p>\n\n\n\n<p><strong>Related:\u00a0<a href=\"https:\/\/www.zilculator.com\/blog\/cost-segregation-for-multifamily-investors-why-it-is-necessary\/\">Cost Segregation For Multifamily Investors: Why It Is Necessary<\/a><\/strong><\/p>\n\n\n\n<p>There are other ways for deals of this nature to be\nstructured but this gives would be investors a general outline to work with.\nNow, it is time to move onto more challenging concepts&#8230;.<\/p>\n\n\n\n<h2><span id=\"Can_We_Wholesale_Without_Putting_Money_Down\">Can We Wholesale Without Putting Money Down?<\/span><\/h2>\n\n\n\n<p>This is a more complicated query. While the original\nstory might make some readers believe that they are able to make wholesale\ndeals without money down, there is one element that was not mentioned. Making\nthe sort of connections that allow flips to take place is not as easy as it\nlooks.<\/p>\n<!-- WP QUADS Content Ad Plugin v. 2.0.17 -->\n<div class=\"quads-location quads-ad2\" id=\"quads-ad2\" style=\"float:none;margin:0px;\">\n\n <!-- WP QUADS - Quick AdSense Reloaded v.2.0.17 Content AdSense async --> \n\n\n<script type=\"text\/javascript\" >\nvar quads_screen_width = document.body.clientWidth;\nif ( quads_screen_width >= 1140 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }if ( quads_screen_width >= 1024  && quads_screen_width < 1140 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }if ( quads_screen_width >= 768  && quads_screen_width < 1024 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }if ( quads_screen_width < 768 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }\n<\/script>\n\n <!-- end WP QUADS --> \n\n\n<\/div>\n\n\n\n\n<p>Wholesaling is all about marketing. The top marketers are\nalways going to have more success than those who sit around and wait for things\nto happen. Wholesaling can be done without money but there is no way for a real\nestate investor to be successful without putting in the time and effort.<\/p>\n\n\n\n<h2><span id=\"What_About_The_Legal_Aspect\">What About The Legal Aspect?<\/span><\/h2>\n\n\n\n<p>There is a great deal of debate as to whether wholesaling\nis technically &#8220;legal&#8221;. The laws that govern these matters tend to be\ndifferent from state to state. The research process is incredibly important. It\nis in the best interests of any investor to consult with an experienced\nattorney before making any sort of binding decision.<\/p>\n\n\n\n<p>Those who argue against the legality of these deals believe that the wholesaler is essentially acting as a broker and lacks the proper licensing. On the other hand, those who argue for the legality of wholesaling say that these rules do not apply. They are merely selling the ownership of a contract and not an actual property.<\/p>\n\n\n\n<p><strong>Related:\u00a0<a href=\"https:\/\/www.zilculator.com\/blog\/how-to-finance-your-first-flip-3-foolproof-methods\/\">How To Finance Your First Flip: 3 Foolproof Methods<\/a><\/strong><\/p>\n\n\n\n<p>Some states may also not allow a buyer to market a property that they do not currently own. That is why a <a href=\"https:\/\/www.zilculator.com\/blog\/7-surefire-ways-to-fail-as-a-real-estate-investor\/\">real estate investor<\/a> will need to make sure that they are sitting down for a consultation with an experienced lawyer. The lawyer lets the investor know if they are on the wrong side of the law. <\/p>\n\n\n\n<h2><span id=\"How_To_Remain_On_The_Right_Side_of_the_Law\">How To Remain On The Right Side of the Law<\/span><\/h2>\n\n\n\n<p>Fortunately, a wholesaler is able to remain on the right side of the law by taking a couple of crucial steps. It all starts by obtaining a broker&#8217;s <a href=\"https:\/\/www.zilculator.com\/blog\/is-it-worth-to-get-a-real-estate-license-as-an-investor\/\">license<\/a>. There is no need to worry about the potential pitfalls from a legal standpoint if the correct licensing has been obtained. Sure, this step might be costly but it is well worth avoiding the typical legal hassles, right?<\/p>\n\n\n\n<p>An investor should also be willing to purchase the property and sell it themselves. This allows the investor to sidestep any concerns associated with the lack of legality that comes with selling a contract for a property. These are the steps that a wholesaler takes when they want to be sure that their purchase is pure. <\/p>\n\n\n\n<p>Make sure to check our <a href=\"https:\/\/www.zilculator.com\/properties\/wholesale-sample\/512b12dd\">wholesale property report <\/a>&#8211; a new feature of our property software. We always add new features, to make our tool even better for our customers.\n","protected":false},"excerpt":{"rendered":"<p>For new investors who are making their way into the world of real estate, wholesaling is a key strategy. Even investors who do not have a sizable amount of capital&#8230;<\/p>\n","protected":false},"author":3,"featured_media":68772,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[166],"tags":[169,174,172],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Beginners Guide To Wholesale Real Estate | Zilculator: Real Estate Investment Analysis blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zilculator.com\/blog\/a-beginners-guide-to-wholesale-real-estate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Beginners Guide To Wholesale Real Estate | Zilculator: Real Estate Investment Analysis blog\" \/>\n<meta property=\"og:description\" content=\"For new investors who are making their way into the world of real estate, wholesaling is a key strategy. Even investors who do not have a sizable amount of capital...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zilculator.com\/blog\/a-beginners-guide-to-wholesale-real-estate\/\" \/>\n<meta property=\"og:site_name\" content=\"Zilculator: Real Estate Investment Analysis blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/RealEstateAnalysis\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-04-24T18:35:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-24T11:58:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.zilculator.com\/blog\/wp-content\/uploads\/2021\/01\/a-beginners-guide-to-wholesale-real-estate.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1500\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Zilculator\" \/>\n<meta name=\"twitter:site\" 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