How Can I Start Wholesaling With No Money?

By Daniil Kleyman:

Wholesaling real estate typically involves finding discounted properties (usually off-market) and then assigning the contracts to other investors for a fee, without actually purchasing the property yourself. While having some capital can be advantageous, it's possible to start wholesaling with little to no money. Here are some steps to get started:

  1. Build knowledge and expertise: Educate yourself about real estate wholesaling by reading books, attending seminars, listening to podcasts, and studying online resources. Gain a solid understanding of the wholesaling process, local market trends, and legal requirements.
  1. Network with industry professionals: Connect with real estate agents, investors, wholesalers, and other professionals in your area. Attend real estate networking events, join online forums, and engage in conversations to build relationships. Networking can help you find potential buyers and sellers, learn from experienced wholesalers, and access opportunities.
  1. Find motivated sellers: Look for distressed property owners who may be motivated to sell quickly.  While strategies that allow you to scale up your deal flow involve marketing that can cost quite a bit of money, there are free ways in which you can start searching for deals:  driving for dollars (identifying rundown properties while driving through neighborhoods), FSBOs, online marketing, or word-of-mouth referrals. Focus on targeting homeowners facing foreclosure, probate, divorce, or financial difficulties. Tax delinquent lists obtained for free from local counties can also be a great source of deals!
  1. Negotiate favorable deals: When negotiating with motivated sellers, aim to secure properties at significant discounts. Emphasize the benefits of a quick, hassle-free sale. It's crucial to build rapport, listen to the seller's needs, and present yourself as a professional and reliable solution.
  1. Locate cash buyers: As a wholesaler, your profit comes from assigning the contract to an investor buyer. Network with local investors who are actively buying properties. Attend real estate investment club meetings, advertise your deals on online platforms, and connect with potential buyers through local real estate focused Facebook and LinkedIn groups.
  1. Assign contracts: Once you've negotiated a favorable deal with a motivated seller, you can use an Assignment of Contract to transfer the rights and obligations of the purchase contract to your buyer. Consult with a real estate attorney to ensure compliance with local laws and regulations regarding contract assignments. In some states you may need to do what’s called a “double closing” instead of a contract assignment. 
  1. Collect an assignment fee: The assignment fee is the profit you make as a wholesaler. When assigning the contract to the buyer, negotiate an assignment fee that is reasonable and fair based on the value of the deal. The fee can range from a few thousand dollars to a percentage of the property's value.
  1. Focus on consistent marketing and lead generation: Continuously work on marketing strategies to find new deals and expand your network. Consistency is key to maintain a steady flow of leads and opportunities.

Remember, while wholesaling can be done with little money, it does require time, effort, and dedication. Building a solid foundation of knowledge, networking with industry professionals, and consistently marketing yourself will help you succeed as a wholesaler. 

A great place to get started and up to speed quickly is the NO BS Wholesaling 101 course.  It’s a 7 Module training that you can get for just $18 (limited time).  Click Here for More Info

This course shows you exactly how to find sellers, how to find buyers, and connect them together to collect your assignment fee checks on your wholesale deals.  Not only that, but you get a resource kit that includes legal contracts you can use, scripts, and other essentials you’ll need to get started!

No BS Wholesaling 101 Masterclass

rehab valuator no bs wholesaling 101 masterclass

Haven't Tried Rehab Valuator Yet?