What is a Real Estate Wholesaler?

What is a Real Estate Wholesaler?

Today,  I want to talk about wholesalers and wholesaling. I want to explain to you the basic concept of what it is and how it works and whether as a long-term real estate investor you should consider working with wholesalers.

So, a wholesaler is someone they're not necessarily a real estate agent who can go and approach sellers and say hey, a nice house that you have here, I'm working you know on buying properties in your area and I'd like to buy your house for let's just say two hundred thousand dollars, okay and they give the seller a contract for two hundred thousand dollars without the real intention of ever actually closing on that house for two hundred thousand as soon as they get that contract with the seller,  the seller agrees to sell it for two hundred thousand the wholesaler goes and they try to find a different buyer who they can assign that contract to they basically find somebody else and say hey I got this great deal this house I think is an incredible property I think fixed up it's worth 300 000 and I'll sell it to you for 220 000 and then what they do is they get the end buyer to buy it for 220 000 the seller still gets their 200 000 and the wholesaler gets their $20,000 fees.

It can be a very lucrative business there are some wholesalers who are extremely successful at what they do and I think there is a niche in the market for what they do and I have bought a property from a wholesaler very very happy with it he got a great fee on the property I got to see on the settlement statement what his fee was and I was still ecstatic. Yes, he got that fee but I got an incredible property at a great price see part of being a real estate investor is it can be very hard to scour and find all the right deals all the time not only can it be hard it can also be expensive you know sometimes people start sending letters and they start sending texts and they start calling by the time you factor in the cost of doing all those things in your time and money.

It can be very hard to find those deals so i say when the opportunity is right it's absolutely okay to let a wholesaler do all the leg work for you and then you are able to still buy a property at a great price and you know but sometimes wholesaling is not right you know so there are some cases where i think wholesalers could do a better job of informing the consumer of what their intentions with the property are because if there was you know a little old lady who could have got 220 from for her house that's why i don't personally wholesale i want to be able to help my clients get 220 if there's an investor out there who wants to pay 220 for it but again i have bought properties from wholesalers and extremely happy with my experience if you're working with an agent and you're thinking about investing in real estate i would absolutely make sure that they're sending you wholesale list opportunities i know here in the Phoenix area as an example i get probably two emails a day it feels like sometimes from wholesalers with whole lists of properties that they're wholesaling sometimes i don't love their numbers you know we gotta vet their numbers and make sure that we agree with what their valuations are but there have been some very good opportunities there.

What does this mean to you? If you're even a little bit interested in learning more about participating in the Phoenix housing market as a seller, buyer, or investor... you NEED to know this stuff! Or at least work with someone who is obsessed with the market stats. Reach out to me today so we can start working on making your real estate dreams a reality!


More videos here!

5 Homebuyer Tips
Here are five tips for navigating the home buying process.
3 Financing Tips
If you are planning on buying a home using a home loan then these three tips will help you get prepared for the financing process.
Credit Score Ranges & Factors
A credit score is a number between 300–850 that depicts a consumer's creditworthiness.
Required Mortgage Documents
Every lender requires documents as part of the process of approving a mortgage loan. Here are documents you’re generally required to provide...
How to Improve Your Credit
Credit scores play a big role in determining whether you’ll qualify for a loan and what your loan terms will be.
The Home Inspection Process
After your offer gets accepted, you’ll have an inspection period. This is your opportunity to have a licensed inspector canvas the home looking for common issues prior to moving forward with the home purchase.
The Appraisal Process
Once you are under contract, your lender will send out an appraiser to verify the purchase price is in line with the property’s value. Here are the two most important things to know about the appraisal process.
Homeowners Insurance
A homeowners insurance policy will protect you against certain losses and damage to your new home and is generally required by lenders prior to closing.
How To Buy in a Tight Market
Here are five things tips that can increase your chances of getting your dream house in a competitive housing market.
Thinking About Remodeling? Here’s some tips.
If you’ve made the decision to remodel your home before selling it, you should do some research to find the right contracting company.
Digital Photography
When selling your home, it’s important to upload high-quality images that really show it off to potential buyers.
How to Recognize a Qualified Buyer
When you’re selling your home, it’s exciting to get an offer! But unless your potential buyer has the resources to qualify for a mortgage, you might not really have a sale.
Questions to Ask Yourself When Considering Selling
If you’re thinking about selling your home and moving to a new location but you aren’t entirely sure about the idea, here are some helpful questions to ask when making up your mind.
Tips to Make the Sale Process Faster
If you’re thinking about listing your home on the market, here are some tips to make the sale process faster and easier long term.
Home Showing Checklist
If you’re selling your home and are getting ready for a home showing, here are some tips that will increase your chances of success.
How To Add Curb Appeal
Want to add some curb appeal to your home before listing it on the market? Here are some tips that will help!
How To Attract More Buyers
Attracting buyers to your home on the market is an important task in order to have it sell quickly. Here are some tips on how to convince buyers to make an offer on your home!
What to Know About the Appraisal Process
After accepting a contract for the sale of your home, the buyer’s lender will send an appraiser to make sure the purchase price is in line with the property’s value.
Is the Buyer Pre-Approved, or Not?
When selling a home, it’s important to understand the different types of loan approvals that you will come across.
Self managing your rental properties vs hiring a property manager pros and cons
Self-managing your rental properties vs hiring a property manager pros and cons. Hi, I'm Merrill Jencks. I am a real estate investor and I want to help you understand the basics of investing in rental properties. This video will cover the pros and cons of self-managing your own properties vs hiring a property manager so that you can make an informed decision when it comes time for you to invest in your first rental property. If you want to know more about rental properties in the Phoenix Metro area sen
What is a Real Estate Wholesaler?
What is a Real Estate Wholesaler and what do they do? The Phoenix housing market is one of the hottest markets in the country. It's also a very competitive market with lots of investors competing for great deals. That means that if you're just getting started, then it might be difficult to find your first deal. That's where real estate wholesalers come in! Watch this video to learn more about what they are and how they can help you take your investing skills up a notch. Facebook:https://www.facebook.com
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Post a Comment