A wholesaler in real estate contracts a home with a seller and then finds a buyer. The wholesaler sells the house to a buyer for a higher price than a seller and wants to keep the difference as profit. In most cases, real estate wholesalers locate and purchase distressed properties.
One of the best ways to get started in real estate investing is to wholesale real estate. In a nutshell, wholesaling is the process of locating a deal and reselling to an end investor. This allows you to avoid risk and avoid typing up capital for the duration of the rehab.
When you wholesale real estate, you are given a low barrier to entry, but this does not mean victory. There is a fine line between success and failure in real estate, as with anything else. You must have a basic understanding of the process and everything it entails. You might end up spinning your wheels if you don't have it.
Do You Need a License to Wholesale Real Estate?
According to Than Merrill's article, "You do not need a license to wholesale real estate; you need to be the principal buyer in the transaction. It is helpful to have specialized knowledge of the home buying and selling process, but no assessment is required to begin."
That said, obtaining a real estate license can have several benefits for investors interested in wholesaling. With a real estate license, investors can access the MLS, a great source of property leads. Obtaining your real estate license can also open investors up to several networking opportunities, which could be helpful down the road.
Real estate wholesaling is a wise investment and channel in the real estate sector. Spend some time learning the process before taking a leap of faith.
You can help empire the success of your wholesaling efforts by researching your market and developing a strong buyer list. The best part is that investors who master this strategy will discover it can help them jumpstart their real estate businesses.