Hi Merly! Absolutely! Wholesaling is a great way to break into real estate without needing much capital or experience. The process involves finding discounted properties and assigning contracts to cash buyers for a profit. To get started: Set up your business structure with a name, domain, and email for credibility. Know your market so you can spot deals quickly. Build a cash buyer list using tools like PropStream or Craigslist. Secure Proof of Funds (POF) to present yourself as a serious buyer. Hope this helps!💙
Great question! To prevent these scenarios you can have the property locked under a legally binding Purchase Agreement with the seller, utilize a Memorandum of Contract and Non-Circumvention Agreements, or build trust with the seller and clarify you are the buyer or point of contact for the transaction These create legal and relational barriers to safeguard your deal. You can check out more about our strategies for wholesaling real estate with our FREE training: www.realestateskills.com/training?el=ytoshorts
In most cases, the seller is responsible for paying the agent's commission. This fee is usually included in the contract between the seller and their agent, and it’s paid from the seller's proceeds at closing. As a wholesaler, you generally aren’t responsible for covering the seller’s agent's commission. Responsibility for closing costs can vary depending on negotiation and local customs, but here’s the usual breakdown: - The seller typically covers costs like title fees, their agent’s commission, and any unpaid property taxes. - The wholesaler (or the end cash buyer if the deal is assigned) often covers buyer-side costs, including inspection fees, lender fees (if any), and other transactional fees. In wholesaling, make sure to clarify who covers which costs in the purchase agreement. Negotiating closing costs with the agent and seller upfront can also help maximize your assignment fee. Hope this helps!
How long of an inspection period do you put in the special stips / contingencies? And do you put it contingent upon buyer's approval of inspection or put it contingent upon buyer to find a second buyer? I'm in Real Estate now but am interested in wholesaling since I'm already prospecting homeowners... Thank you
Hi Josef! For wholesaling deals, a 7 to 14-day inspection period is common; 10 days usually provides enough time to evaluate the property and line up a buyer if needed. It’s typically best to make the contract “contingent upon buyer’s approval of inspection” rather than mentioning finding a second buyer. This keeps the terms simple and flexible if issues arise. Since you’re already prospecting homeowners, you’re in a great position to leverage those connections for wholesaling deals. Good luck, and happy wholesaling!
Hi there! Yes, the cash buyer typically sees your assignment fee since it appears in the closing documents. Serious cash buyers usually expect this, as they value the deal you’re bringing them. Just be transparent upfront, and focus on delivering deals that meet their criteria to ensure a smooth transaction. Hope this helps!💙
Yes, that’s exactly how wholesaling works! You contract the property with the seller for $100k and assign it to the buyer for $110k, keeping the $10k difference as your assignment fee. It’s all about finding below-market deals and connecting sellers with buyers-simple and effective! To learn more about wholesaling real estate, check out our FREE training: www.realestateskills.com/training?el=ytoshorts Happy investing!
How do you go about finding people who want to buy houses. If the sellers or agent is trying to sell the house, why do they need a middleman? Can’t they just have the agent do what they do to sell the house? What could I do that the agent can’t do? Isn’t the middleman acting as an agent but not actually an agent?
Hi David! Wholesalers focus on solving problems agents typically can’t. Sellers often need fast, hassle-free cash sales for distressed properties, which aren’t ideal for retail buyers. Wholesalers find cash buyers (investors) through networking, online platforms, skip tracing, and bandit signs. Unlike agents, wholesalers don’t represent buyers or sellers. Instead, they secure purchase agreements and sell their contractual interest. This is legal and distinct from acting as an agent. Hope this helps!💙
Hey, I'm new to real estate wholesaling and trying to understand the process better. When we lock in a property at a certain price, like $100K, where does that money come from? Is it just a placeholder, and we don't actually need to have that amount? Also, I'm a bit confused about our relationship with investors. Are they on our side, or are we more like middlemen between them and the sellers? And what if the seller and buyer decide to cut us out of the deal to save money by going directly to each other? How do we ensure they don't bypass us, especially since they don't owe us any trust or loyalty before seeing the property? Any advice on making solid agreements and building trust would be really helpful!
Hi there! Great questions! Here’s a quick breakdown: The $100K is a Contract, Not Your Money: When you lock in a price like $100K, you don’t need to have that amount. You’re simply securing the contract at that price and assigning it to a cash buyer for a higher price, keeping the difference as your fee. The buyer funds the deal, not you. Your Role with Investors: Think of yourself as a middleman, but ideally, you want to build partnerships with investors. You provide deals they need, and they pay you for that service. It’s a win-win. Avoid Getting Cut Out: Use an Assignment of Contract to secure your fee legally. Add a Non-Circumvent Clause to protect against the buyer and seller working around you. Build trust through clear communication and professional conduct. Tip: Work with investor-friendly title companies to ensure your agreements are solid. For more, check out: www.realestateskills.com/blog/assignment-of-contract Good luck!💙
We recommend finding buyers first before even finding a deal that way you're guaranteed to have buyers! In the case you don't do this, then be sure to include contingencies in your contract that allow you back out without any liability. Cheers & Happy Wholesaling!
Hi there! If you can't find a buyer, your ability to void the contract depends on its terms. Most agreements include a contingency or inspection period that allows you to back out without penalty. After this period, you could forfeit your earnest money or face legal challenges. To avoid this, build a strong cash buyers list beforehand, use protective clauses, and be upfront with sellers about your process. Hope this helps!💙
@ thanks for the info! My only other question is when your up front with the buyer about your process, do they often not want to do the deal with you anymore knowing that there is someone out there willing to pay 5-10k more? Thanks for the reply!
Hi Cam! Buyers pay higher prices because of the profit potential, convenience, and time saved. Wholesalers handle the hard work of finding deals, and buyers are willing to pay more for ready opportunities that fit their investment criteria. Hope this helps!💙
Hi there! If no one buys the contract, you won’t be stuck paying $100k. Most wholesale contracts include an “inspection period,” allowing you to back out if you can’t assign it to a buyer. That’s why having a solid cash buyer list is key to avoid this situation! Hope this helps!💙
Hi Ken! In California, there’s no legal minimum age to learn about wholesaling real estate or practice many of its aspects like researching properties, building a cash buyers list, or networking. However, when it comes to signing contracts and officially closing deals, you typically need to be 18 years old because legal contracts in California generally require the person signing to be an adult. But don’t worry! At 17, you're in a great spot to prepare. Here's what you can do: Build your cash buyers list: Start making connections now. Use tools like Craigslist, Facebook, or bandit signs to find buyers interested in real estate. Study your local market: Learn the neighborhoods, pricing trends, and types of deals cash buyers want. Create your new-age presence: Set up professional social media profiles on platforms like Facebook and LinkedIn to establish credibility. By the time you're 18, you'll be ready to start locking up deals! Hope this helps!💙
The Cash Buyer pays you the difference! The cash buyer is typically a fix & flipper in the area purchasing multiple deals a month! Check out our TH-cam channel “Real Estate Skills” here for videos on How To Find & Talk to Cash Buyers: youtube.com/@realestateskills
Hi Ryan! Cash buyers may pay more because they’re buying potential profits. Fix-and-flip investors see opportunities to resell for more after renovations, while buy-and-hold investors focus on rental income and long-term appreciation. In competitive markets, they’ll offer more to secure the right deal quickly. Hope this helps!💙
@ricardotriana1197 You can typically back out during your inspection contingency given that you've read through the contract and ensured you're allowed to.
@taelynkim117 You want to make sure that you find you cash buyers first and are only bringing them deals that fit their specific buying criteria. If you've done this and still no one want the deal you can back out during your inspection contingency.
Hi there! Thanks for your comment! To clarify, as wholesalers, we connect motivated sellers with buyers, providing a fast, hassle-free sale for sellers who prefer not to deal with repairs or long listings. We earn a fee for facilitating the deal, with both parties agreeing to the terms upfront. Transparency is key, and everyone benefits from the arrangement. Hope this clears things up!
Check out the full video on "How To Wholesale Real Estate Step by Step (IN 21 DAYS OR LESS)!" here: th-cam.com/video/JFnUABPy-A8/w-d-xo.html
That was so helpful!! I'm 13 and I'm trying to learn real estate. Thanks
That's awesome at such a young age, you're taking an interest in real estate investing, Sinifix!
Cheers & Keep Learning! 🏡🚀
Starting a wholesaling business can be a great way to enter the real estate market or other industries.
Hi Merly!
Absolutely! Wholesaling is a great way to break into real estate without needing much capital or experience. The process involves finding discounted properties and assigning contracts to cash buyers for a profit.
To get started:
Set up your business structure with a name, domain, and email for credibility.
Know your market so you can spot deals quickly.
Build a cash buyer list using tools like PropStream or Craigslist.
Secure Proof of Funds (POF) to present yourself as a serious buyer.
Hope this helps!💙
Thanks bro
Hi there!
Thank you for the kind words!
What would stop the “fix and flipper” from just getting the contract from seller cutting you out? I’m new and trying to learn as much as I can
Great question! To prevent these scenarios you can have the property locked under a legally binding Purchase Agreement with the seller, utilize a Memorandum of Contract and Non-Circumvention Agreements, or build trust with the seller and clarify you are the buyer or point of contact for the transaction
These create legal and relational barriers to safeguard your deal.
You can check out more about our strategies for wholesaling real estate with our FREE training: www.realestateskills.com/training?el=ytoshorts
If this transaction is done thru a real estate agent representing the seller, who covers the closing costs and commissions?
In most cases, the seller is responsible for paying the agent's commission. This fee is usually included in the contract between the seller and their agent, and it’s paid from the seller's proceeds at closing.
As a wholesaler, you generally aren’t responsible for covering the seller’s agent's commission.
Responsibility for closing costs can vary depending on negotiation and local customs, but here’s the usual breakdown:
- The seller typically covers costs like title fees, their agent’s commission, and any unpaid property taxes.
- The wholesaler (or the end cash buyer if the deal is assigned) often covers buyer-side costs, including inspection fees, lender fees (if any), and other transactional fees.
In wholesaling, make sure to clarify who covers which costs in the purchase agreement. Negotiating closing costs with the agent and seller upfront can also help maximize your assignment fee.
Hope this helps!
How long of an inspection period do you put in the special stips / contingencies? And do you put it contingent upon buyer's approval of inspection or put it contingent upon buyer to find a second buyer? I'm in Real Estate now but am interested in wholesaling since I'm already prospecting homeowners... Thank you
Hi Josef!
For wholesaling deals, a 7 to 14-day inspection period is common; 10 days usually provides enough time to evaluate the property and line up a buyer if needed.
It’s typically best to make the contract “contingent upon buyer’s approval of inspection” rather than mentioning finding a second buyer. This keeps the terms simple and flexible if issues arise.
Since you’re already prospecting homeowners, you’re in a great position to leverage those connections for wholesaling deals. Good luck, and happy wholesaling!
Does the "cash buyer" see the profit your making off them when they're taking the contract to buy the property? Or is that confidential?
Hi there!
Yes, the cash buyer typically sees your assignment fee since it appears in the closing documents. Serious cash buyers usually expect this, as they value the deal you’re bringing them. Just be transparent upfront, and focus on delivering deals that meet their criteria to ensure a smooth transaction.
Hope this helps!💙
So basically what I’m understanding is that I offer 100k to the seller than I offer the buyer the house and request 110k ?
Yes, that’s exactly how wholesaling works! You contract the property with the seller for $100k and assign it to the buyer for $110k, keeping the $10k difference as your assignment fee. It’s all about finding below-market deals and connecting sellers with buyers-simple and effective!
To learn more about wholesaling real estate, check out our FREE training: www.realestateskills.com/training?el=ytoshorts
Happy investing!
How do you go about finding people who want to buy houses. If the sellers or agent is trying to sell the house, why do they need a middleman? Can’t they just have the agent do what they do to sell the house? What could I do that the agent can’t do? Isn’t the middleman acting as an agent but not actually an agent?
Hi David!
Wholesalers focus on solving problems agents typically can’t. Sellers often need fast, hassle-free cash sales for distressed properties, which aren’t ideal for retail buyers. Wholesalers find cash buyers (investors) through networking, online platforms, skip tracing, and bandit signs.
Unlike agents, wholesalers don’t represent buyers or sellers. Instead, they secure purchase agreements and sell their contractual interest. This is legal and distinct from acting as an agent.
Hope this helps!💙
@ it did help. Thanks
Hey, I'm new to real estate wholesaling and trying to understand the process better. When we lock in a property at a certain price, like $100K, where does that money come from? Is it just a placeholder, and we don't actually need to have that amount? Also, I'm a bit confused about our relationship with investors. Are they on our side, or are we more like middlemen between them and the sellers? And what if the seller and buyer decide to cut us out of the deal to save money by going directly to each other? How do we ensure they don't bypass us, especially since they don't owe us any trust or loyalty before seeing the property? Any advice on making solid agreements and building trust would be really helpful!
Hi there!
Great questions! Here’s a quick breakdown:
The $100K is a Contract, Not Your Money:
When you lock in a price like $100K, you don’t need to have that amount. You’re simply securing the contract at that price and assigning it to a cash buyer for a higher price, keeping the difference as your fee. The buyer funds the deal, not you.
Your Role with Investors:
Think of yourself as a middleman, but ideally, you want to build partnerships with investors. You provide deals they need, and they pay you for that service. It’s a win-win.
Avoid Getting Cut Out:
Use an Assignment of Contract to secure your fee legally.
Add a Non-Circumvent Clause to protect against the buyer and seller working around you.
Build trust through clear communication and professional conduct.
Tip: Work with investor-friendly title companies to ensure your agreements are solid. For more, check out: www.realestateskills.com/blog/assignment-of-contract
Good luck!💙
@@RealEstateSkills Thank you 💪🏾 really humble and helpful
What if you can’t find a buyer?
We recommend finding buyers first before even finding a deal that way you're guaranteed to have buyers!
In the case you don't do this, then be sure to include contingencies in your contract that allow you back out without any liability.
Cheers & Happy Wholesaling!
Thanks man I was gonna ask the same question I’m 18 and I really need to get some money and this seems so fun and good paying job to do
What happens if you get the property under contract but fail to find a cash buyer? Can the contract be void?
Hi there!
If you can't find a buyer, your ability to void the contract depends on its terms. Most agreements include a contingency or inspection period that allows you to back out without penalty. After this period, you could forfeit your earnest money or face legal challenges.
To avoid this, build a strong cash buyers list beforehand, use protective clauses, and be upfront with sellers about your process.
Hope this helps!💙
@ thanks for the info! My only other question is when your up front with the buyer about your process, do they often not want to do the deal with you anymore knowing that there is someone out there willing to pay 5-10k more? Thanks for the reply!
why would they want to buy it at a higher price ?
Hi Cam!
Buyers pay higher prices because of the profit potential, convenience, and time saved. Wholesalers handle the hard work of finding deals, and buyers are willing to pay more for ready opportunities that fit their investment criteria.
Hope this helps!💙
N what if no one buys the contract? U have to pay 100k?
Hi there!
If no one buys the contract, you won’t be stuck paying $100k.
Most wholesale contracts include an “inspection period,” allowing you to back out if you can’t assign it to a buyer. That’s why having a solid cash buyer list is key to avoid this situation!
Hope this helps!💙
How old you have to be to do it. I’m 17 and currently live In California can I still wholesale?
Hi Ken!
In California, there’s no legal minimum age to learn about wholesaling real estate or practice many of its aspects like researching properties, building a cash buyers list, or networking. However, when it comes to signing contracts and officially closing deals, you typically need to be 18 years old because legal contracts in California generally require the person signing to be an adult.
But don’t worry! At 17, you're in a great spot to prepare. Here's what you can do:
Build your cash buyers list: Start making connections now. Use tools like Craigslist, Facebook, or bandit signs to find buyers interested in real estate.
Study your local market: Learn the neighborhoods, pricing trends, and types of deals cash buyers want.
Create your new-age presence: Set up professional social media profiles on platforms like Facebook and LinkedIn to establish credibility.
By the time you're 18, you'll be ready to start locking up deals!
Hope this helps!💙
Who pays u the difference?
The Cash Buyer pays you the difference!
The cash buyer is typically a fix & flipper in the area purchasing multiple deals a month!
Check out our TH-cam channel “Real Estate Skills” here for videos on How To Find & Talk to Cash Buyers: youtube.com/@realestateskills
Why would they want to pay more I don’t get it
Hi Ryan!
Cash buyers may pay more because they’re buying potential profits. Fix-and-flip investors see opportunities to resell for more after renovations, while buy-and-hold investors focus on rental income and long-term appreciation. In competitive markets, they’ll offer more to secure the right deal quickly.
Hope this helps!💙
What if you don't find Another buyer, are you now stuck with a mortgage or how does it work?
@ricardotriana1197 You can typically back out during your inspection contingency given that you've read through the contract and ensured you're allowed to.
So what if you can’t sell it?
@taelynkim117 You want to make sure that you find you cash buyers first and are only bringing them deals that fit their specific buying criteria. If you've done this and still no one want the deal you can back out during your inspection contingency.
So you are ripping off the customer?
Hi there!
Thanks for your comment! To clarify, as wholesalers, we connect motivated sellers with buyers, providing a fast, hassle-free sale for sellers who prefer not to deal with repairs or long listings.
We earn a fee for facilitating the deal, with both parties agreeing to the terms upfront. Transparency is key, and everyone benefits from the arrangement.
Hope this clears things up!