Wholesaling as a Real Estate Bird Dog – Training Lesson 28

Once you become comfortable with locating properties and referring them to investors, it may be time for you to move on to the next level of real estate investing. This next stage is where you personally take control of the property and then re-sell it to an investor or consumer. No longer a Real Estate Bird Dogger, you are now a Wholesaler.

Wholesaling mostly involves the process of getting a property under contract (a purchase and sale agreement or an option to buy).  A Real Estate Bird Dog will then sell the contract to a homebuyer or an investor. Unlike rehabbing houses, where you need a lot of money to fix up the property, an investor doesn’t need a huge amount of money to wholesale properties. All that’s needed is to find a “motivated seller” who needs to sell their property.

A real estate Wholesaler has the potential to earn much more money than a Bird Dogger, but he also assumes a larger risk. A Wholesaler gains control of the property, typically purchasing it at under what the going “retail” rate is, and then puts the property under contract. At this point, the Wholesaler can re-sell the property outright to another investor, or hold the property and fix it up a bit himself. Even just a small clean up can increase the potential profit for the Wholesaler. A person who does some clean-up before re-selling a property is called a Rehabber.

When wholesaling a property, you want to re-sell it quickly and not hold onto it for any long-term purposes. Normally, as a wholesaler you want to purchase the property at a great price and then re-sell it for a few thousand dollars more than what you purchased it for, without doing any work or ever having to deal with a tenant. An experienced investor can sometimes make $10,000 to $20,000 a month this way, working full-time.

The advantages of being either a real estate wholesaler are great. You are an entrepreneur and you have the option of choosing your own hours. You set your own schedule and hours, and can work as little or as much as you’d like. You are your own boss and you are building your company.

Tagged with: real estate bird dog • real estate wholesaler

Filed under: Flipping - Wholesaling

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