The Benefits of Wholesaling

1 You don't need any money to buy the property because, in effect, you're not actually buying it. You're buying the contract and then re-selling it. Many times, your name won't even be on the property title unless you choose to double-close it

2 You don't need a good credit rating because, again, you're not buying the property. In the "regular" real estate market, you won't get anywhere without good-to-excellent credit because lenders don't like risk. Wholesaling has no such barrier. It doesn't matter what your credit rating is; you can dive in and start making money using only your brain and hard work.

3
There's minimal risk because you're selling paper or a contract, not the property itself.

4
There are no holding costs. You don't have to pay mortgages or do any maintenance. You can buy "as is" and sell "as is."
5
The condition of the house doesn't matter. Wholesaling is all about price.
You have the ability to make money quickly (closing on a property between 14 to 30 days).

6
There is an abundant supply of wholesale properties and not as many investors going after them (compared to other real estate strategies).

Disadvantages

As with any real estate strategy, there are disadvantages.
1There's more competition since it's the easiest profit center in real estate investing.

2 You make less money per deal compared to rehabbing and selling to owner-occupant buyers.

3 There's no residual income. You must continue to do deals to make money.

Advantages of Wholesaling VS Disadvantages

However, the advantages of wholesaling far outweigh the disadvantages. When done right, it's a very profitable strategy. And, it can serve as a stepping-stone to longer-term investments within the real estate market. In essence, I'm giving you the key to unlock the door to a whole new world of financial security.

Let's take a closer look at the profit potential in wholesaling. Assume you want to keep your present job and plan to start in wholesaling part time. With my system, you can make $3,000-$5,000 per wholesale deal doing one transaction per month. On a yearly basis, this adds up to $36,000-$60,000. Not bad for part-time income, is it?

Now, let's assume that you want to pursue wholesaling as a full-time job. You can make $10,000-$15,000 per deal at two deals per month. That means you can make from $240,000-$360,000 on a yearly basis!

So, you can set goals for the amount of money you want to make in the real estate market and be independent at the same time. Essentially, the ability to meet those goals will depend on two things-your negotiating experience and the ability to get a deep enough discount to make a profit.