Updated: Oct 18, 2022
It’s 2022 and getting into real estate investing has never been hotter.
That might seem like a strange oxymoron – we’re over a year removed from a global pandemic that has fundamentally changed the landscape of our daily lives and economics – and the housing market seems to be out of control.
But the actual reality is that investing in the market can be done, with the right mindset and strategy in place.
In this updated guide, we’ll explain what real estate wholesaling is, how it works, what the current trends are after a whirlwind year, and where the market will be later in the year and on to 2023.
Ready to jump in?
What is Wholesale Real Estate?
Let’s get the ball rolling – what exactly is wholesale real estate?
Wholesale real estate, or real estate wholesaling, is the process of finding undervalued real estate properties (or deals) and connecting those deals to cash buyers.
This results in a wholesaler receiving a finder’s fee.
How exactly does that work?
There are 3 main parts to wholesale real estate:
The wholesaler looks for an undervalued property to purchase. Usually, these are homes that are in a state of disrepair or ones that require some work.
Next, the wholesaler negotiates a contract with the homeowner to sell the property for a fixed price within a certain timeframe.
Lastly, the wholesaler finds a buyer to sell the contract to. They then buy the property and make any renovations needed to place the home on the market.
It’s really that simple!
Arguably the best short-term investment real estate strategy, wholesaling is incredibly accessible for beginners.
In my 20-year real estate journey, I had to learn on the fly, but those challenges led me to co-founding KeyGlee and then starting AstroFlipping, so I could help others get started and understand how to find and make better deals.
And because real estate wholesaling is so easy to get started, you can even do it without leaving your house!
Yes, that’s right, you can also wholesale virtually from anywhere in the world.
How to Get Started in Wholesaling Real Estate & Do It Like a Pro
Now you’ve got the basics of wholesaling real estate, now it’s time to get down to business.
And that’s learning the business!
As I mentioned at the top of this guide, we’re in a strange time right now where the market is concerned.
But here’s the thing – even with all of these things happening, one thing remains true right now:
Buyers are buying!
Buyers are reading housing reports, they’re seeing the speculation of what these current trends and upheavals are, and that’s why they’re buying like crazy.
The reason wholesalers, like myself, are able to do so well at this time is that we always see an opportunity for potential. Many people talk about there being low inventory, but they’re talking about a completely different product.
When people talk about low inventory housing, they’re talking about the retail product, the houses that have already been renovated and improved.
But these houses have to come from somewhere, right?
That’s where distressed properties come in. And there are many ways to find these types of homes:
Driving for dollars
Building up wholesale relationships
Partnering with other wholesalers
Because the pandemic caused a lot of challenges for people, wholesaling can be a great alternative for homeowners, who need to sell right away and don’t have time to wait months or years for their house to sell on the market.
Outside of looking for wholesale opportunities, another thing you should be doing is learning.
Learn, learn, learn…that’s really the only way to become successful in this business and really, life in general.
So where does someone go to learn more about wholesale real estate?
Just like finding distressed properties, there are many ways to learn more:
Once you’ve taken a deep dive into the subject, you’ll be able to go out with the knowledge of being able to comp properties, discover their ARVS, whether you want to do acquisitions, dispositions – or everything else!
And there you go!
Every journey begins with the first step, which is the hardest! It may seem a bit scary or overwhelming at first, but it’ll set you on a pathway toward your future financial success.
Welcome to the world of wholesaling!