Is Wholesaling Real Estate Worth It? Most Googled Questions
Ronnie's back to answer more of the internet's most Googled questions about real estate investing. Is wholesaling real estate worth it? Is it profitable? Is it dying?Is wholesaling real estate legal?
Actually, yes, it is legal. It is very, very legal. It just depends on what state you're in and what's going on with it.
So for states like Illinois, Illinois made a radical change. I believe maybe sometime right before the pandemic happened and everybody was freaking out because they made a change. It said that in order to sell a contract, you have to hold a real estate brokerage license in that state.
So a lot of people do things in states like Indiana or Alabama because those states do not require you to have a broker's license.
Again, that's why it is always good that you talk with a title company that can help walk you through those legalities. Make sure you know exactly what's going on. Make sure your contracts are right so that you are protected from what you're doing.
So it is legal, but you want to make sure that you check with the local authorities in the market that you're working with and working in to make sure that you are doing everything by the book, because that's what we want.
Is wholesaling real estate ethical?
We just talked about the legalities of it, but is it ethical? To answer that question, yes, it is ethical. A lot of people get a lot of bad raps for wholesaling because people say "oh, you're predatory" or "you're causing all these bad things to happen".
That's not the case when it comes to real estate wholesaling. It is literally about actually making sure that we have the right seller in the right situation, fitting with what you can actually provide.
What happens when people say "you're taking advantage of things" is when the sellers aren't aware of exactly what's happening. The other thing is, too, is that you want to make sure that you're not overpromising for what you can deliver and what your services are.
If someone wants retail for their property, guess what? They should go get retail for their property. Hopefully, you've built a network or I'm telling you now build a network of realtors that are in that area that you can refer that person to better help them.
We're not in the business of taking advantage of people. People are in pain, yes, but some people are OK with understanding, "Hey, I don't need the equity on the home", "The problem is too big", "I really don't care that much about the money". It's OK.
So that's what we're looking for. We're looking for people that are ethical, that do the right thing.
If I leave you with one thing, when it comes to this, do no harm. Whatever situation you're in, whatever part you make, make sure that when you leave the situation, you have done no harm.
Is wholesaling real estate hard?
The answer is no, it's pretty simple. Market, talk with a motivated seller, get it under contract, market the contract, find in buyer, sign, title company closed. So that concept is very simple.
What is hard is the time and investment that you have to put into it.
What is hard is hearing No.
What is hard is working through some of those sellers that you do connect with and then just hearing some of those hard stories, horror stories and working through that.
What is hard is dealing with some of the tenants and some of the different things that go into it.
What is hard is getting feedback from some end-buyers that are like, man, this property sucks and your price is too high.
So, you know, that happens. So some of that rejection is hard. But again, you have to think about the bigger picture.
It is still fun. Learn to enjoy the journey and watch your life change as you do it right, ethically and legally.
Is wholesaling real estate worth it?
Oh yes, you're talking and looking at someone that got into wholesale real estate literally four years ago as of this recording, but being able to make some dramatic changes in my life.
Built a house, invest in a property in another market, watch my savings account happen, and just watch my life change, and being able to impact other people. So one of the biggest rewards I get is the peace that I have, but it's not just about the money.
Also being able to help other people because when people come to me for help, I actually have the capacity to say that I am not just going to pray for you, I can also, you know, do what the grandma used to do, put a little something in your hand and I'm all about that.
Is wholesaling real estate profitable?
Yes, hands down real estate is profitable. I work with a lot of different wholesalers throughout the world. Literally, I am watching everyone that I've been able to come into contact with seeing their life change just off of one, two, four deals.
So is it profitable? Yes. And the DealMachine app is your first way of being able to go ahead and get on the phone call. People, get that mail out so you can start that process.
Is wholesaling real estate saturated?
So a lot of people say that "Man, there are so many wholesalers out here" "It is so saturated, I don't get it". But the answer is that yes, it is competitive. It is great to be honest about that.
It is competitive. But guess what? No one has talked to you yet. You haven't got on the phone and been able to show people what's going on with you. No one has connected with you.
Actually, I talked to a lady and she was like, "You were the first person that actually came and listened to me, and I feel safe with you".
I even talked to the neighbor next door. She was like, "You're what? You're also going to try to buy the house?"
I looked at her confidently. I said, "No, I really am going to buy the house"
she said, "No, you're like the 10th person that came over here this past week."
But guess what? Guess who got the house? I got the house.
So yes, it could be saturated, you might say that. But there are still so many opportunities out there. There's still a lot of people that don't know what you can offer.
Your bandit sign might be the bandit sign that changes someone's life. Do you know what I'm saying?
So don't get caught up in the fear of or the analysis paralysis or saying, "Oh my God it's just so saturated, maybe I need to go do something else."
Try it, do it. Download the machine app, get on a phone, call and watch the magic happen. Favor can hit your life just by you trying, but if you continue to not do that and say it's saturated, you'll never know.
The last one, let's see what we got here.
Is wholesaling real estate dead?
Real estate is not The Walking Dead. It is not a zombie, for my church people "It is yet alive!". It is not going anywhere at all. Wholesaling real estate is the feeder, for everything else that you see happen.
I can walk through the city and drive through the city of Indianapolis, and I'm looking at all these nice big flips in the area where we're recording right now. Sometimes I just look at the people that are watering their grass, and I'm just like, if it wasn't for me, you wouldn't be in this house right now.
Wholesaling is not going anywhere. Matter of fact there are a lot of other companies that are trying to figure out what to do and how to do it.
I've had conversations just this week with investors in Wisconsin, in Chicago, and developers in Kentucky trying to figure out, "Hey, how do you wholesale real estate?".
Because they can't find any deals, so I'm telling you it's not dead is actually getting a lot more nuanced, OK?
So keep going. Keep trying again. Download the amazing app.
I hope you guys enjoyed it.
Leave some comments👇👇 Let me know what you guys think.
About Elise Knaack
Elise is the Head of Marketing at DealMachine. She manages all media to help our members learn more about real estate investing and how to use DealMachine to scale their business fast.