Dominique Brown never expected losing his job at AT&T to be the best thing that happened to him. But when he found himself unemployed, he decided to try something different: wholesaling real estate. Today, he's financially independent and earns more than he ever did installing cable and internet.
If you're interested in wholesaling real estate and creating your financial freedom, this step-by-step guide shows exactly how Dominique succeeded and how you can too.
What Is Wholesaling Real Estate?
Wholesaling real estate is when you find distressed or undervalued properties, get them under contract, and then assign that contract to another buyer for a profit. You don't need to buy the property yourself or fix it up. Instead, you're acting as a middleman between the seller and the buyer.
Dominique learned about wholesaling from a Breakfast Club interview featuring a guest named Mark. At first, he didn't act on the idea. However, once he lost his job, he remembered the opportunity and decided to give it a try.
Within 90 days, he closed his first deal, earning $7,000; more money than he'd typically earn in months at his old job.
How to Start Wholesaling Real Estate: Step-by-Step
Step 1: Learn the Basics
Dominique's success started with understanding wholesaling basics. You need to:
- Identify distressed properties.
- Negotiate with the property owner.
- Get the property under contract.
- Assign that contract to a cash buyer or investor.
Step 2: Find Potential Deals (Driving for Dollars)
Dominique initially found deals by "driving for dollars." This method involves driving around neighborhoods to identify properties that appear neglected or abandoned.
When Dominique began, he and his partner:
- Took screenshots of potential properties.
- Researched property owners online.
- Made cold calls to property owners.
- Followed up consistently with potential sellers.
Step 3: Negotiate and Get the Contract
Negotiation is a key skill in wholesaling. Dominique's first deal involved a partially renovated home damaged by Hurricane Harvey. The homeowner was overwhelmed and ready to sell. It took about a month of back-and-forth negotiations, especially with the owner’s mother, who lived in Mexico.
When negotiating:
- Clearly communicate the benefits to the seller (quick sale, cash payment, no further repairs).
- Be patient and persistent.
- Build trust and rapport.
Step 4: Assign the Contract to a Buyer
Dominique partnered with a real estate firm, Net Worth Realty, to find a buyer. They marketed the property to their network of buyers. Dominique's first deal made him a $7,000 profit after expenses.
To assign contracts:
- Partner with local realtors or investment firms.
- Network at real estate meetups.
- Use email marketing or online platforms to promote your deals.
Proven Tips to Scale Your Wholesaling Business
Since that first $7,000 deal, Dominique has closed over 50 deals, averaging around $15,000 each. He uses proven strategies like:
- Reverse Driving for Dollars: Finding cash buyers first and then targeting deals in their preferred neighborhoods.
- Networking with Realtors: Creating joint ventures and paying standard commissions to incentivize cooperation.
- Email Marketing Campaigns: Using platforms like Constant Contact to communicate deals to buyers regularly.
By following these steps consistently, Dominique built a sustainable wholesaling business that gives him financial freedom and more time with his family.
The Benefits of Wholesaling Real Estate
Wholesaling real estate offers several key benefits:
- Low Barrier to Entry: You don’t need significant capital to start.
- Quick Cash Flow: Deals can close in as little as 30 to 60 days.
- Flexibility: You control your schedule, allowing time for family and other priorities.
Dominique values the ability to spend more time with his children, structuring his workday around his family’s needs. This lifestyle wasn't possible at his previous job.
Real-Life Example of Wholesaling Success
Dominique’s first deal demonstrates that anyone can succeed in wholesaling with the right strategy and persistence. Within three months of losing his job, he completed his first deal, which changed his financial future.
Since 2018, he has earned significantly more than his previous salary and continues to grow his business through smart strategies, networking, and process improvements.
Wholesaling real estate turned Dominique Brown's challenging situation into financial independence. By following these steps and staying persistent, you can start your journey toward a profitable wholesaling career.
Frequently Asked Questions
What exactly is real estate wholesaling?
Wholesaling real estate involves finding distressed properties, placing them under contract, and then selling (assigning) that contract to a buyer for a fee without buying the property yourself.
How much money can I make wholesaling real estate?
Your earnings depend on location, market conditions, and your effort. Dominique made $7,000 on his first deal and averages around $15,000 per deal after completing over 50 deals.
How do I find properties for wholesaling?
Use "driving for dollars," networking, online searches, and real estate meetups. Building relationships with local realtors can also bring steady deals your way.
Do I need a real estate license to wholesale?
Most states don't require a license for wholesaling since you're assigning contracts, not selling properties directly. However, check your local laws or consult an attorney to be sure.
