Wholesaling real estate can be a highly profitable business and income strategy, especially if you’re just starting out in the industry or looking to expand your existing portfolio.
It’s typically the “intro” to people who want to fully dive into real estate investing and lack the funds.
We have a list of courses (free and paid) below, but let’s first dive into why wholesaling is such a powerful tool in real estate…
________________________
Learn how to find leads to wholesale deals from! Sign up to get our free ebook on how to use proven direct mail strategies for finding deals!
________________________
With wholesaling, it enables you to:
- Grow your income to purchase investments for your portfolio.
- Grow your reserves — Having a portfolio of rentals means you’ll need cash reserves
- Learn how to analyze properties like a pro
- Learn how to negotiate
- Learn the real estate transaction
The key to success in wholesaling is being very skilled in marketing, sales, and analysis.
These 3 components are what make you successful as a real estate wholesaler.
But learning these three is no easy task… and certainly not an overnight YouTube binge.
This is where enrolling in a reputable wholesaling real estate course can greatly benefit you and ensure a higher chance of success.
We’ll give you a list of top wholesaling courses (free and paid) in a bit…
But first, for those that don’t know what wholesaling is, lets dive into the definition:
What is wholesaling real estate?
Wholesaling real estate refers to the process of finding off-market properties, negotiating with the seller, entering into a purchase contract, and then quickly selling the contract to another investor, typically a fix-and-flipper or a rental property owner.
The wholesaler profits from the deal by charging an assignment fee to the investor. This investment strategy provides a lower risk and lower capital requirement compared to other methods in real estate.
As a beginner, it’s a valuable skill to learn, and relevant courses can help you master it.
What’s a good wholesaling course look like?
A well-structured wholesaling course typically covers essential aspects of the process such as identifying properties suitable for wholesaling, negotiating contracts with motivated sellers, and finding end buyers who are interested in purchasing these properties at a discounted rate.
By mastering these skills, you’ll be able to generate income from real estate transactions without the need for large capital investments or the hassles of property management.
So a GOOD wholesaling course will cover these crucial topics:
- How to find motivated sellers
- How to analyze properties
- How to estimate repair costs
- How to calculate a Max-Allowable-Offer
- How to run an appointment
- How to find cash buyers
- How to close
Remember, enrolling in a credible course is essential to achieve the desired outcomes in the wholesaling real estate world, so make sure to do your research before committing to a specific program. With the right education and dedication, you’ll be well on your way to success in the competitive and rewarding realm of real estate wholesaling.
Top Wholesaling Courses in 2023
1. Ryan Dossey’s Reverse Wholesaling (FREE)
Ryan Dossey is a well-accomplished real estate investor and serial entrepreneur. His roots in entrepreneurship were in wholesaling.
But he struggled, so he created a way to SELL contracts easily and effectively without being an absolute pro in analyzing deals or having a frothing buyers list.
It’s called Reverse Wholesaling, and it’s where you have a real cash buyer analyze the deal for you before you make an offer.
The reason why Ryan Dossey gives out this info entirely for free in the below (masterclass) video, is because he’s not interested in charging for it. He’d rather help people get some success in REI today, and potentially use him to help scale their REI business.
Check out more about Ryan and how he helps investors get out of the hamster wheel
Here’s the free video on how to start reverse wholesaling:
Virtual Wholesaling – Chris Chico ($1,997)
Chris Chico, another well-accomplished investor who “perfected” the art of virtual wholesaling — AKA: flipping anywhere.
So he offers a comprehensive course with bonus material on how to find motivated leads with digital marketing.
He’s a vetted coach and has lots of success stories from students.
If you’re serious about wholesaling real estate from anywhere in the world… then we highly recommend Chris Chico (the leader in teaching virtual wholesaling) and his complete course:
Here’s a quick video from him:
Those courses above, depending on the context, will give you a complete run-down of what you need to start wholesaling…
But we want to also give you some “meat” for those hungry inspiring wholesalers looking to know more about what they’re up against.
So the following is a list of must-knows to start wholesaling…
Terms every wholesaler needs to know
- Assignment: You sign a purchase agreement with a seller and then assign the contract to a buyer. You make a profit by charging the buyer an assignment fee.
- Assignment Fee: The fee charged by a wholesaler to assign their contract to an end buyer. It is typically a percentage of the property’s purchase price
- Double Closing: You purchase the property from the seller and then immediately sell it to your buyer. You make a profit from the price difference between the two transactions.
- Buy and Hold: You buy the property and hold onto it for rental income or to sell at a later date when the value has increased.
- Distressed Property: A property that is in poor condition, facing financial difficulties, or in a state of foreclosure.
- Contract Assignment: The process of transferring the rights and obligations of a purchase contract from one party (the wholesaler) to another party (the end buyer) for a fee.
- Purchase Agreement: A legal contract that outlines the terms and conditions of a property purchase, including the purchase price, contingencies, and closing date.
- Due Diligence: The process of investigating and verifying the details and condition of a property before finalizing the purchase.
- ARV (After Repair Value): The estimated value of a property after it has been repaired or renovated. It helps wholesalers assess the potential profitability of a deal.
- Equity: The difference between the market value of a property and any outstanding mortgage or liens on the property.
- Comps (Comparable Sales): Recent sales of similar properties in the same area, used to determine the market value of a property.
- Title Search: A thorough examination of public records to confirm the legal ownership of a property and identify any liens or encumbrances.
- Closing Costs: The expenses incurred during the real estate transaction, such as attorney fees, title insurance, appraisal fees, and transfer taxes.
- Wholesale Buyer: An investor or buyer who purchases properties from wholesalers at a discounted price for the purpose of rehabbing, renting, or reselling.
- Marketing for Deals: The strategies and techniques used by wholesalers to find motivated sellers and attract potential properties for acquisition.
- Double Closing: A closing method where the wholesaler purchases the property from the seller and immediately resells it to the end buyer, using the end buyer’s funds to finance the initial purchase.
- Assignment of Contract: The legal document that transfers the rights and obligations of a purchase contract from the wholesaler to the end buyer
- Escrow: A neutral third party that holds funds and necessary documents during a real estate transaction, ensuring that all conditions are met before the property changes hands.
- Proof of Funds (POF): Documentation or bank statements that demonstrate the availability of funds to complete a real estate transaction.
- Wholesale Deal Analyzer: A tool or spreadsheet used to analyze the potential profitability of a wholesale deal by inputting key variables such as purchase price, repair costs, and expected resale value.
- Seller Financing: A financing arrangement in which the property seller provides a loan to the buyer, often with more flexible terms than traditional lenders.
- Cash Buyer: An investor or buyer who purchases properties with cash, allowing for faster transactions and increased negotiation power.
Remember, this list is not exhaustive, but it covers some essential terms commonly used in the real estate wholesaling industry.
How to find properties to wholesale
To successfully wholesale real estate, you’ll need to find properties that meet your criteria.
And finding properties is one of the hardest parts of this business.
Here are some methods to help you find potential deals:
- Direct mail: pulling a list and sending mail saying: “We buy properties cash! Call me for an offer!” (If you use us, we’ll give you the exact proven messages — and it comes in REAL handwriting!)
- Classified ads: Check local newspapers and online classifieds for properties for sale or lease.
- Online platforms: Websites like Zillow and Trulia list properties for sale and can be helpful in your search.
- Networking: Connect with other investors, real estate agents, and property managers to learn about potential deals.
- Cold calling/texting: A prospecting task that takes a lot of volume. But one of the least expensive ways to reach and find sellers directly.
How to find cash buyers
We’ve already gone over using reverse wholesaling to “bypass” the traditional cash buyers list.
But even if you use reverse wholesaling, there will be a point where you’ll have to build your own cash buyers list.
So here’s a list of ways to build your list (but don’t forget: keep in contact with your list!)
- Post deals in local cash buyer/investing FB groups
- Pull a list of flippers from Propsteam and call them or mail them
- Network with agents (they tend to have buyers in their network
- Network at local REI clubs – these can have lots of buyers
- Network at “investing meetups” (there are many rich doctors/lawyers/etc that are looking to buy property.
- Post deals on Craigslist
Assembling Your Team
Building a solid team plays a crucial role in wholesaling real estate.
Here are some key professionals to include in your team:
- Real estate attorney: Ensures your contracts and transactions are legal and compliant with local laws.
- Title company: Facilitates the closing process and transfers property titles between parties.
- Real estate agent: Can provide valuable market data and help you find potential properties.
- Contractor or home inspector: Provides professional advice on the condition of properties and potential repair costs.
- Buyers list: Compile a list of potential buyers, including real estate investors and cash buyers, who are interested in purchasing your deals.
- Other wholesalers: they can help. They have buyers lists if you need to move a contract
- Mentors: This is a tough business. Often, you’ll need someone to call for help. This can be someone in your local market, or a coach (like the vetted ones we listed above)
- Escrow/closing attorney: You’ll want to make sure you use closing companies that understand that you’re double closing or doing an assignment.
- Salespeople: There will be a point where you’ll need someone doing the appointments for you and closing deals with sellers. This role is called “Acquisition manager”
- Vendors/tools: There’s an array of tools and services that can help make wholesaling EASIER. For example, if you have marketing going out, you’ll have calls coming in. But SOMEONE has to answer those calls 24/7 So there’s a company by the name of “Call Porter” that’s US based and trained exclusively in real estate, that’ll take those calls and book appointments for you.
Contracts
As a wholesaler, you’ll need to be familiar with multiple types of contracts. These agreements will be crucial to your transactions with sellers, buyers, and other parties involved. Some commonly-used contracts in wholesale real estate include:
- Purchase Agreement: This contract outlines the terms and conditions of the property purchase between you and the seller. It states the agreed-upon price, closing date, and any contingencies.
- Assignment of Contract: After you’ve entered into a purchase agreement with the seller, you’ll need to assign the contract to the end buyer. The assignment of the contract legally permits you to sell your interest in the original purchase agreement to the buyer.
_________________________________
Grab the Essential Contract Toolbox!
_________________________________
Conclusion
In the world of real estate investing, wholesaling can be an excellent strategy for beginners or even seasoned investors. By taking any one of the top wholesale real estate courses we listed above, you can acquire the necessary knowledge and tools to succeed in this competitive industry.
We choose the top courses in their category of wholesaling.
Since wholesaling encompasses a number of methods… choose one strategy that fits your goals.
As you navigate through these courses, remember to:
- Practice patience and perseverance, as success in real estate wholesaling may not come overnight.
- Stay updated on market trends and competition, as saturated markets can pose unique challenges.
- Continuously polish your negotiation, networking, and marketing skills, as these will be crucial in securing profitable wholesale deals.
In conclusion, embarking on a wholesale real estate course can be a game-changing decision for your investment strategy. With the right course and a dedicated mindset, you can overcome the challenges and reap the rewards of real estate wholesaling.