No one is in the real estate wholesaling business because it is a great hobby. Wholesalers are here to make money, but they know that there will be some work involved. But everyone who is thinking about getting into the business wants to have a number in mind to know what to expect.
The problem is that there is no set fee for a wholesale deal. Some people insist on making a minimum of $5,000 per transaction, while there are others who make much more on each deal. The determining factor on how much you can make on a deal is you. If you are good at your job, you will make much more than someone who is not as skilled or as dedicated to working through the process to make a profit.
The Most Common Mistake
There is one common mistake that costs new wholesalers a great deal of cash. And that is this simple fact. A wholesaler needs to sell a property at a wholesale price. The buyer for the property is going to be an investor and that investor is also going to need to make some money on the deal. So a wholesaler needs to find really great deals and then sell at below market value. If you are not buying at the right price, you will never be able to find another investor to take the property off your hands.
Your success in wholesaling will depend on how much energy and effort you are willing to put into finding great deals. If you are diligent and stick to the numbers that you know will work, then you can make very good money. But if you buy too high, just for the sake of buying, you will be lucky to make any money at all. Do the math and only make a deal that will earn you a profit.
