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By Than Merrill

Part 2 of 3 – See Part 1 of Wholesaling Real Estate

To learn more about Wholesaling, look at Wholesaling Real Estate For Quick Cash

I received some emails from a few curious investors concerning my last article about wholesaling. As a result I feel I must expand further on the benefits of wholesaling further due the fact that some people think you need financing, good credit, and a lot of free time in order to become a real estate investor. So let me dispel that notion and share with you some more benefits of wholesaling.

Wholesaling Real Estate Does Not Require Good Credit

Having bad credit is a limiting factor when it comes to getting into the buy and hold strategy of real estate investing. However, an unworthy credit score should by no means deter you from wholesaling. As a wholesaler, having a good credit history can help you, but is by no means a necessity. If you have horrible credit it may cost you a few deals during the course of a year by limiting the number of viable exit strategies you have. Don’t let this discourage you as there are still plenty of deals out there where credit is not needed. How many deals will you miss out on? I would estimate 10% of the wholesale deals I have structured required someone to look at my credit because I had to finance the purchase before I sold the property to another buyer. This means 90% of the deals I have done could have been structured by someone with a low credit score or no credit score what-so-ever. A motivated seller will never ask to see your credit score and as long as you can find a buyer before you have to close, your credit will not be needed. Any bona fide wholesale specialist knows they will only have to rely on the credit of their potential purchaser, not their own.

Wholesaling Requires Minimal Capital

As a wholesaler you will need to spend some money during the course of business as it will be hard to operate your office, your lead generation programs, and sales department without spending some money. These aspects of your business will all require some capital to operate, however you will not need huge cash reserves to get started as a wholesaler. The reason is because most of the time you will be using other peoples money (OPM) to operate your business. When you find a buyer before you have to close on the deal you will be using their money to fund the transaction. If you have to close on the property yourself then you will rely on either the sellers existing debt, hard money, or private money to fund the deal. Furthermore, the more you understand about the creative side of transactions the less you will have to use your own money.

Wholesaling Real Estate Can be Done Part Time

I realize many of you presently reading this course may be severely hampered for time because you are working another job. In fact, lack of time is one of the major obstacles hindering most real estate investors. If you are working another job or own another business your time will be very limited and as a result you need to be very realistic about how many hours you can commit on a weekly business. The great thing about wholesaling is the small amount of time it requires to complete transactions. On average it should take you less than 10 hours to purchase, process, and sell a wholesale property. Most of this time involves the processing of the paperwork, clearing title, coordination of parties, and other logistical information.

Wholesaling is one of the only niches where you can do volume on a part time basis. Other niches like rehabbing and being a land lord can suck enormous amounts of time out of your life. (Ask Paul and I how we know that!) The deals will be smaller, but the amount of money you can make per hour committed can sometimes be astronomical.

To learn more about wholesaling real estate and how you can attend my exclusive weekend seminar, check out Marketing and Wholesale Bootcamp

This is part two of a three part series on Wholesaling Real Estate. To find out more about our life changing Real Estate Investing Courses and Real Estate Investing Seminars, see them using the corresponding links or email us at info@fortunebuilders.com. **The reason they don’t film wholesalers on shows like “Flip This House” is because there isn’t enough drama. It is just papers being signed and checks being cashed. Not much fun for T.V. but a hell of a lot of fun for investors!