Real Estate Wholesale Investing Steps for Beginners

Are you looking to invest in real estate but do not know where to start? Perhaps you’ve heard that investing in this industry is expensive, and you believe you do not have the capital to begin your journey as an investor. What if we told you that isn’t an excuse to hold you back?

You see, real estate has produced a lot of billionaires over the years, and some didn’t start on a big note. You can visit to read about the biggest American real estate investors and how they began. When you consider these success stories, you will realize that your fear is the only thing holding you back.

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Luckily, there are some ventures in this industry that you can start without capital – one of them is wholesaling. With this option, you don’t need to invest your own money to start earning in this business. This makes it a viable option for those who want to get into this industry but do not have the funds to or simply do not want to take a big financial risk. Luckily, this article will share the steps you need to know as a wholesaler in this industry.

Meaning of Real Estate Wholesale

Before discussing the steps involved in this business venture, we first have to ensure you understand what it is all about. This way, you’d clearly understand everything that we will discuss subsequently. So, what is real estate wholesale?

This term refers to the process where a person (wholesaler) finds a distressed property, gets it under contract at a fair price, and then finds another investor who would buy the property at a higher price. As a wholesaler, you do not need to spend money buying a property. You simply need to strike a deal with a seller and enter a contract where they’d agree to sell the property to you at a particular price.

Then, you have to get a buyer and sell the property at a higher price than the seller agreed. When investing through wholesaling, the difference between both prices is your profit. Think of it as earning a commission for getting a great deal for the buyer.

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Steps in the Wholesaling Real Estate Process

Now that you know what this venture is all about, you are probably anxious to know how to go about it. Don’t worry, we’ve got you. Below are the important steps in this real estate venture.


The first step in this process is to research and identify possible opportunities. You can start within your neighborhood and then branch out. Your aim at this point is to get a distressed building that is either foreclosed or has been possessed by the bank – these are the properties that you can get at a great deal. Also, take this time to become familiar with any wholesaling laws in your state or region.

Analyze the Building

When you get a building that fits what you are looking for, the next step would be to analyze it. This would help you know the current potential value of the property and its potential value after repairs. This way, you can estimate your profit by knowing how much you can get the property under contract and then determining the amount you’d sell it to the new buyer.  A good way to gauge the potential value of a property is by evaluating the current values of the properties surrounding it.

Secure the Deal with the Seller

The next step is to strike a deal with the seller. At this stage, you need to come to the table with your negotiating skills. You can read this article to learn how to negotiate. Use the property’s condition and your real estate knowledge to negotiate for a good price and other favorable terms. Once both parties (you and the seller) reach an agreement, a lawyer would draw up a contract detailing the deal’s terms that both parties would sign.

Get a Buyer

Now, you need to find someone willing to buy the property’s contract from you. For this step, your networking skills will come in handy. There are so many places you can check for buyers. This includes online platforms, real estate events, and so on.

The price you offer to the buyer should be low enough for them to profit from the deal after renovating the property. Once the buyer agrees to the terms you offer them, you can assign them the contract, thereby giving them your rights to buy the property. In this case, you would get your fee from the buyer.

Alternatively, you can buy the house from the seller at the agreed price after the buyer agrees to your terms. Then, you can sell it off to the buyer at the price you both agreed on. In this case, your profit will come to you directly. However, you will have to spend money purchasing the house if you choose this route.


Real estate wholesaling is a good idea for anyone looking to enter the industry without capital. This article has broken down the process of this venture into steps to help you understand what you need to do. As a beginner, this process may seem difficult and can even become frustrating – but trust us when we say that with time and experience, you’ll get better at it.