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Wholesaling 101 – What You Need to Know to Get Started in Salt Lake City

Posted on: February 6th, 2019 by , No Comments

There are some ways to get into real estate without being a landlord and dealing with tenants. Wholesaling is an option that just requires a little ambition and some specialized knowledge. Maybe you are reading this because you are looking for a crash course in wholesaling 101, or you have a lot of questions like how to wholesale houses with no money, where do you find houses to purchase, and who buys them after you’re done with them. There may or may not be a book, Wholesaling Houses for Dummies, but maybe there should be. And if there was, could it explain wholesaling houses step by step? You have come to the right place to get real estate wholesaling explained.

Wholesaling 101 – Basics of Real Estate Wholesaling Explained

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You really don’t need a book to explain wholesaling for dummies, it’s a simple enough process. The simplest definition of wholesaling is purchasing property for less than it is worth, usually because it’s in bad shape or because the seller had to drop the price for some reason. The goal is to secure wholesaling houses contracts, making the purchase and then selling it as soon as you can, often to another investor who will fix the property up and then either rent it or flip it for a substantial profit. Wholesaling houses contracts can be tricky in some states. You don’t want to be accused of acting as a real estate agent by signing the contract. You have to obtain a license in some areas, so make sure you are aware of the laws in your region. To better explain wholesaling 101, let’s look at wholesaling houses step by step.

A Look at Wholesaling Houses Step by Step

Although each of these steps can be expanded into a series of steps, the process is easily summed up in these three steps.

  1. Step One – Find a property. You need to pay less than the property’s value, so you can resell it and the end user can make money off it too.
  2. Step Two – Build a buyers list. This is a list of people who will purchase wholesale properties from you.
  3. Step Three – Prepare for the closing. Find a title company that is investor friendly.

One of the greatest assets in your toolkit is the buyers list. This can easily be your most valuable asset. This will cost you nothing to compile, it’s simply a strong list of the buyers who will purchase deals from you.

Wholesaling Houses for Dummies – How to Find Investors

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It’s not difficult to generate a solid list of cash buyers or investors, but it will take some effort on your part. It was mentioned in wholesaling houses step by step, but you may need some ideas to get you moving on it. Start on sites like Craigslist that offers online classified ads. Look through them to find ads placed by cash buyers. Contact them and tell them what you do and ask if you can add them to your list, so you can contact them when you come across your next good deal. You can put out bandit signs, do some casual marketing at auctions or attend a Real Estate Investors Association meeting.

Can I learn how to wholesale houses with no money?

Wholesaling houses step by step can be done even without money. The process of how to wholesale houses with no money is relatively simple. You should have some basic knowledge of wholesaling houses contracts. Essentially, you sell the house before actually paying for the property first. You make an offer on the house and then offer it to a buyer for more than you offered to pay. For instance, you offer to purchase the house for less than it is worth, that’s wholesaling 101. Then you offer it to a buyer for more than you paid for it. When they make the cash purchase, you pay for the house and make a profit.

You may also choose to purchase off-market houses. Some homeowners do not want to list their home on the market because there are extra fees involved. The home may be in need of excessive repairs, or there can be some other factors. This is where online sources like Craigslist can come in handy. Homeowners often list their house there since it is cheaper than paying a real estate agency fee.

Wholesaling 101 and the Benefits

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After you have read real estate wholesaling explained, and you have an understanding of wholesaling houses contracts, you are ready to get started. But perhaps as part of wholesaling 101, we should explain some of the benefits. There are several reasons it is a good business to get into. Here are the most prominent benefits:

  • You can learn how to wholesale houses with no money.
  • You do not have to qualify for loans, or even have a good credit score.
  • There are very low risks involved. This is much less stressful than what landlords must deal with in terms of repairs, finding renters, or worrying about unclogging a toilet.
  • You can make a quick profit in less than 30 days.

Real Estate Wholesaling and Investors Explained

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These are the basics of how to get started in wholesaling and how to wholesale with no money. If you are still having some doubts, talk to other experienced investors. They can help you understand the steps of wholesaling 101.

For instance, we at Salt Lake Wholesale Homes are experienced investors who want to connect with other investors. Not only can you add us to your investor cash buyer list, we can help you get real estate wholesaling explained. Once you get a grasp of wholesaling houses contracts, purchasing with no money, and finding investors you won’t need the book, Wholesaling Houses for Dummies. You’ll be a pro in no time at all!

Have questions about wholesaling houses? Give us a call at 801-810-8756. We’d love to answer any questions and help your real estate investing business!

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.