Wholesale Lease Options | Excellent Middleman Service Sure To Bolster Your Reputation

What is a great way to make sizeable profit without putting hardly any of your own money at risk? Four words: wholesaling lease options investing aka wholesaling. It’s not for everyone, but if you enjoy turning a deal, have nerves of steel and a good eye for profitable properties, it may be just your niche.  If you enjoy turning great deals over to others without investing in them yourself on a large scale, then wholesale lease options investing can be a nice way to make a living.   

Here are the basic facts that you need to get your start in wholesale investing:  

Wholesaling does not require a real estate license, so don’t worry about having to take special courses to enter the field. The reason that you don’t need a license is because you will have an equitable interest (option)in any property that you buy or sell. The interest can either be contractual (you have a property under contract) or actual (you own the property or have a title to it).

A wholesaler rarely buys the property

Wholesaling is basically getting a contract on a property (often a distressed one) and immediately re-selling it to another retail investor who can pay cash, obtain credit, or can purchase with a hard money loan. The key is getting a quick closing on the property. A wholesaler normally never buys a property; s/he simply enters into contracts for properties with contingencies built in. You want to sell for more than you paid. If you are unable to sell quickly and are expected to close on the deal, you can usually call in your contingency and walk away from the contract. A wholesaler is primarily a middleman service for a retail investor to use to find properties that have potential at rock-bottom prices.

Finding bargains is the key!

Price is the key to winning at wholesale lease options investing. You have to sell properties at prices where they will move so that you are not left holding the bag. That means that you need to find bargain properties that often need some work, and you also need to have a solid network of retail investors, as you are providing a middleman service, who will consistently buy from you. It might take a bit of time to build up your reputation and construct a network of buyers, but once retail investors trust you, they will buy often from you.

The startup investment is miniscule 

Your initial investment in any homes that you are trying to sell quickly should be minimal—the costs of taking out a contract on a property, your time spent looking around for properties and negotiating settlements for them, plus any marketing that you might do. Truly, the start-up investment is miniscule.

As you get to know your market and familiarize yourself with what investors want in a property, your abilities to make money will greatly increase. If you can keep your cash flow rolling, you can continue to “buy” and sell, “buy” and sell. The key is generating quick cash so that you can draw on great opportunities.

Experts on wholesale lease options investing recommend that you work out at least a half dozen wholesale deals before you plunk down money on a steal that you’re excited about. The reason is that you do not want to plug your cash flow, and you also need to gain a lot of experience about the real estate market before you take the plunge and buy a place for yourself to turn around.

Don’t worry. The time will come for you to re-make a run-down house into a palace as you make a profit on the first six deals that you engineer. In a way, wholesaling is a bit like being a baker. No baker will make a lot of money if s/he continues to eat all of his/her best products. It’s also like being a passer in a given sport; you enjoy distributing good deals to others, not hogging them for yourself.

In essence, you can look but not touch as you spy out properties with a future, put a contract on them and then sell—quickly—to an investor that has the means necessary to amass several properties and rent them out. In time, you will find a steal that you have to capitalize on, but in the meantime keep relaying the great deals, provide an excellent middleman service, and become a trusted seller in this new market.

Join our newsletter

If you like Critical Financial, subscribe and get our latest content via email.

Powered by Seva

Share this post:

Recent Posts

Leave a Comment


May the 4th Be with You: Star Wars Swag on Amazon

May the 4th Be With You: Star Wars Day Swag

It began as the punniest holiday ever but quickly grew into an earnest (if somewhat random) celebration of the long-running (and still... more →
People count the money to buy a house in future success.

Avoiding Mortgage Scams: Don’t Fall for Unreasonable Promises

If it sounds too good to be true, it probably is. That’s sound advice for almost all aspects of life, including the search for... more →
Eat for free for a whole month via the meal kit companies discounts for new customers.

How To Get a Month of Free Food: 9 Meal Kit Companies Offering Discounts to New Customers

Play your cards right and you might be able to line up a month’s worth of free meals if you were to try out all nine of the meal... more →
Generate extra cashflow -- here are 97 ways.

96 Awesome Ways to Generate Extra Cashflow

Who doesn’t want more money nowadays? We’ve got you covered on that front. Here comes a long list of different ideas on... more →
Valentine's Day gifts that won't destroy your budget

Valentine’s Day Crafts Are Romantic Rescue from Crazy Inflation

Fall for the hype this week and you’re out an average of $143.56 for Valentine’s Day. Crafts and other do-it-yourself tactics... more →

Ultimate Guide to Bitcoin — FREE Ebook!

Have we got something for you: a free ebook about bitcoin! more →
Get a flu vaccine.

Why You Need To Get a Flu Vaccine Right Now

Flu vaccines aren’t just for the elderly  anymore. Here are 25 reasons you should go get vaccinated. more →
Financially successful

Acquire the Trait All Financially Successful People Have

Financially successful people tend to all have a lot of self-discipline. Improving your discipline in one area of your life often spills... more →

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →

How to Get Ahead in the Property Investment World

Getting ahead in any kind of investment game always takes a little bit of hard work and ingenuity, so this is a handy guide designed... more →