Wholesaling houses is one part of real estate where you can make a lot of gains without investing significant capital. I have worked on multiple deals in real estate, but the cash flow and the profits started increasing after I jumped into real estate wholesaling.
In this case I will share my take on how I made money as a real estate agent without investing any money.
Yes, you heard that right! I invested zero dollars, but still made a profit.
Remember when we were told as kids that you cannot really make money out of thin air? Well, our parents surely hadn’t heard of wholesaling houses.
Real estate is all about creating relationships, and through one of my relationships I got to know that there was a contract I could sign. My friend was an inheritance lawyer and contacted me to get in touch with a lady teacher who had inherited the family property and was looking to sell it for quick money.
Now, I was new to wholesale properties and wanted to see the possibilities before I accepted the contract. I asked a couple of people around me, and they recommended me to go for wholesale dealings, as it was easy money.
I proceeded with the deal and signed the contract for the distressed property. The fine point about wholesaling real estate is that you need to sign a limited period contract. Once the contract expires you won’t retain the right to sell that property.
The contract I had signed for that specific home was marked at $390,000, but there was potential for the home to be sold at around $470,000 without any repairs or renovations as such.
As soon as I got the contract signed, I contacted all of my potential buyers and references to let them know that I had a property with me and was looking to sell it off in the market. I invited them over for a visit. The price for the distressed property was way less than the usual rate in the market, which is why it attracted a lot of interest.
One of my old clients saw the home and immediately wanted the home for their family. The wholesale fee for the job was $20k and my client paid $4k upfront as an escrow, as they gathered the rest of the funds for the transaction. Once they had gathered the funds for the transaction, they paid the rest of the $16k into my account. Thus, in a matter of couple of days, without any prior experience in wholesaling, I had earned $20,000 through wholesaling real estate property.
I did, however, benefit a lot because of the friends and the connections that I had made across different fields. My connections were willing to help me out in the process and were the reason why I was able to seal the deal without delay.