How To Start A Real Estate Wholesale Business

To start a real estate wholesale business, one must gain knowledge of the local property market, develop a strong network, source potential property deals below market value, negotiate contracts with property owners, and then sell those contracts to interested investors for a profit.

Are you an aspiring entrepreneur looking to make your mark in the real estate industry? Starting a real estate wholesale business might just be the perfect opportunity for you. Real estate wholesaling is a lucrative venture that allows you to find deeply discounted properties and assign or resell them to other investors for a profit. But how do you get started in this business? In this blog post, we will walk you through the essential steps you need to take to kickstart your own real estate wholesale business. Whether you are a seasoned real estate professional looking to diversify your income streams or a complete newbie to the industry, this guide will provide you with valuable insights and practical tips on how to successfully launch and grow your real estate wholesaling venture. So without further ado, let’s dive in and explore the world of real estate wholesaling together.

How To Start A Real Estate Wholesale Business: Step-by-Step


Step 1: Market Research

As a business expert, it is crucial to comprehend the dynamics of the local real estate market. This knowledge allows for the identification of regions where properties can be purchased and sold at a substantial profit margin.

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Step 2: Establish a Network

Creating strong connections with real estate agents, attorneys, and other industry professionals is crucial. Their expertise and networks provide invaluable access to properties and potential buyers, enhancing business opportunities and increasing the likelihood of successful transactions.

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Step 3: Find a Suitable Property

In order to maximize investment potential, it is advisable to seek out properties that are undervalued or facing financial difficulties. These properties often present an opportunity for contract purchasing at a discounted price, leading to potential long-term gains.

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Step 4: Analyze the Property

In assessing the value of a property, it is important to consider factors such as repairs, renovations, and potential profit margins. This analysis helps determine the overall financial viability and feasibility of the investment opportunity.

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Step 5: Secure Funding

In determining the funding source for purchasing the property, options such as personal savings, partner’s capital, or hard money lenders must be considered. Careful evaluation of these alternatives is essential to secure the necessary finances for the investment.

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Step 6: Contract Assignment

Once you find a suitable property, you must secure and sign a purchase contract, ensuring your exclusive rights to buy the property from the owner.

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Step 7: Find a Buyer

In order to sell the property, the next step is to actively search for a potential buyer who may be interested in purchasing it. This could involve reaching out to other investors in the real estate market or engaging with individuals who are actively seeking a new home.

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Step 8: Assign the Contract to the Buyer

When you transfer your purchase rights to the buyer, you make a profit by selling at a higher price than what you initially agreed upon with the seller. The difference between the buyer’s payment and your agreed price is your profit.

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Step 9: Close the Deal

At the closing, the seller, buyer, and a closing agent come together to complete the final steps of the sale. This involves legal formalities and paperwork, ensuring a smooth and legally binding transfer of ownership.

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Step 10: Collect Your Profits

Once the property is sold, you receive your profits, consisting of the amount that exceeds your initial purchase price, and this is calculated by subtracting the buyer’s payment from your original investment.

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Step 11: Repeat the Process

Continuously seek out, acquire, and successfully market underestimated properties, while also broadening your connections and partnerships in order to maximize growth potential in your wholesale real estate enterprise.


Starting a real estate wholesale business can be an exciting and profitable venture. It offers the opportunity to make significant earnings through quick property sales without the need for extensive capital or long-term investment. By following the steps outlined in this blog post, you can establish a solid foundation for your wholesale business. Remember to build a strong network of contacts, educate yourself on the local market, and develop effective marketing strategies to attract potential buyers and sellers. With dedication, determination, and a commitment to providing value, you can position yourself for success in the real estate wholesale industry.


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