How Realtors Are Making More Money Wholesaling Real Estate vs Listing Properties
Wholesaling Real Estate Can Be More Profitable then a New Listing. As a real estate agent you are in a position in which you can easily spot a wholesale real estate deal. First what is “Wholesale Real Estate”?
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What is Wholesale Real Estate?
Wholesale real estate is the process of getting a distressed home and/or a greatly discounted property under contract for a limited time to then assign it to another buyer for an assignment fee.
Your intentions as a property wholesaler are not to fix and flip the property. Instead, you market it for a higher price than the one owners requested in the contract. This strategy is beneficial for those looking to get into real estate but don’t have the money to do it. You just need to be careful not to fall into legal confusion or tricky contracts.
Wholesale Real Estate Disclosures
It does cause a problem with fiduciary responsibility if you have a real estate license, so please check with your state regulation and/or an attorney. Always disclose your real estate license in the real estate sales contract. You may want to confirm with your broker that it acceptable to wholesale real estate, as some brokers frown upon it.
You do NOT need a real estate license to Wholesale Real Estate
That is 100% correct, you do NOT need a real estate license to wholesale real estate. You do need MLS access (Multiple Listing Service) so you can research property values, but you can easily get access. If you do not have a real estate license it can be to your advantage, since realtors have to abide my the State Laws of Fiduciary Responsibility.
Wholesaling Real Estate Can Lead to a Fix-And-Flip
What I really love about Wholesaling Real Estate is it opens more doors for generating revenue. During the recession of 2008-2010, I found myself in a huge financial bind. I was completely dependent on home sales. During that period I did everything I had to do to put food on the table. I was not too proud to do just about anything to support my little family.
One door it opened was a condo I bought in River Oaks (Houston’s Most Luxurious Neighborhood) for $135,000. I literally was shocked they took my offer, and so was the listing agent. I remember the day she called me, it was a HOT Sunny Friday afternoon around 4pm. She said and I quote… “Well Allen, if you can get down here by 5pm you got yourself a River Oaks Condo for about 60% off!”
Long story short… I got the condo, used creative financing since it was the recession – Banks were NOT LENDING at all… well unless you had 40% down and had A+ Credit. — I renovated the unit for about 20K and a little elbow grease and BOOM sold that bad boy for $185,000 for a $30,000 profit.
I have to be honest with you… It gives me chills thinking about it. How God or whatever power is out there that you believe in can answer your call. The call that I sent out there was BELIEF. I believed in myself, I was scared to take on debt, I was scared to do a rehab because I didn’t have any experience, I was scared to put myself out there.
Allen Jimenez at 25 Years Old & New Realtor
But fear does NOT exist… It only exist in our mind. F.E.A.R. = False Evidence Appearing Real
Unknown Source
In essence, I highly recommend Wholesaling Real Estate. It’s a completely new avenue for another source of income. Wholesaling real estate can be extremely profitable. My largest wholesale real estate deal was a $1.7M piece of land that I wholesaled for $1.83M… and I didn’t even close the deal… I simply reassigned it. I actually bought a house in cash with the $133,000 in profit I made from that deal…. Then I rehabbed that house and sold it for over $200,000.
