We first came across of the concept of wholesaling when we read the book “How to Make Big Money with Small Apartments” by Lance Edwards. It is a very easy to understand book but it introduces various concepts you can get started in real estate, without a lot of upfront capital. Wholesaling is one of them.

Anyone who is interested to make some money in real estate can try wholesaling. You do not need a real estate agent or broker license to do so. But since we are not lawyers here, please only use this blog post for educational purposes only, and do your due diligence to confirm if the state you do business in, allow you to conduct wholesaling or not.

So what is wholesaling? It is a way of active income, which means you got to put in your effort here, like a job. Using your connection and hard work, you locate deals or opportunity. Once you find a deal, you enter into a contract with the seller, and then immediately to shop for a new buyer! Once you line up a new buyer for your deal, you simply assign your contract to the new buyer, and you make what is called an “assignment fee” in return.

There may be states that do not allow assignment fee or wholesaling in general. For those states, the way to handle it is to do a “double closing” – which means you officially purchase the property in the morning, and in the afternoon you sell to the new buyer. Obviously, there will be more recording and legal fees involved with a double close, but it will get the job done.

As you can see, getting started with wholesaling does not require much capital, just your hard work. Invest in yourself and get a course to study about wholesaling, it is always a good investment if you invest in yourself with more education. We got our inspiration from Lance Edwards’ book, we encourage you to read it as well!