How Much Money Can You Make Wholesaling Real Estate?


The first question that comes to mind when people consider a career in wholesaling is, unequivocally, “how much money can I make?” But the truth is, there is no limit to how much you can earn while wholesaling real estate. As with most sales-based business endeavors, the amount you make is proportional to the effort and strategy you put into achieving your goals. 

Before stepping foot into the world of real estate investment, ask yourself how much money you would like to make and devise a plan to actualize your goals. Today, we’ll show you how to maximize your income and build a successful real estate wholesale business.

How Does Wholesaling Real Estate Work?

Wholesaling real estate brings the potential to earn astronomical profits, and at first, it may appear too good to be true. However, it is possible to meet and exceed your expectations with the right strategy. 

Simply put, real estate wholesalers search for properties that property owners are selling for far below market value and take them under contract. Then, they sell the contract to-buy to another real estate investor, who will typically renovate the home and rent it out or sell it for a profit. Contract to-buy means that real estate wholesalers aren’t purchasing a property. They buy the real estate contract, which grants them the ability to sell the property to investors at a price with which the property owner agrees.

How Much Money Will You Make Wholesaling Real Estate?

When you start wholesaling, you will receive your payment in the form of an “assignment fee,” which is compensation the end buyer provides for connecting them with the seller. The typical assignment fee is $5,000, but you could earn as much as $20,000 for a single deal. Of course, the amount you earn depends on the contracts you successfully assign each month. 

Every deal you undertake will be unique because every buyer has different financial goals. Since you’ll be negotiating with buyers, perform your due diligence beforehand. Assess the property’s potential and try to see it through the eyes of your ideal buyer. How much will the property cost before and after repairs? Does the property appear better for a house-flipping project or long-term rentals? Once you have the most crucial information, factor in your preferred assignment fee to begin the negotiation process.

What to Know About Real Estate Assignment Contracts

It is highly recommended that you work with a lawyer to ensure that the language in your contracts complies with your area’s real estate wholesaling laws and regulations. In addition, it is vital that the agreement clearly defines expectations for buyers and sellers. Consider the following when considering real estate assignment contracts:

  • Contract Prohibitions. Ensure that your contract does not have a prohibition for future assignments. If so, you can run into serious legal issues later down the road.
  • Property-Specific Prohibitions. Remember that property obtained by the Department of Housing and Urban Development (HUD), real estate owned (REOs), and listed properties are sometimes not open to assignment contracts. For instance, REO properties are subject to a 90-day waiting period before investors can resell them.

How Will You Succeed as a Real Estate Wholesaler?

The prime benefit of wholesaling real estate is the low starting cost, which is ideal for beginner investors with a limited amount of startup capital. Most people can begin wholesaling real estate for as little as $5,000 to $10,000. Since you won’t purchase any property, most of this money will go towards marketing and expanding your network.

Your success as a wholesaler hinges on your ability to maintain a steady stream of buyers and sellers, then connect them. This may sound easy in practice, but establishing a solid presence takes time. Most real estate wholesalers use a wide range of marketing tactics to build a list of potential buyers and sellers, including direct mail, social media, and email marketing.

Cold Call is the Key to Success in Real Estate Wholesaling

While these tactics can be effective, they lack the human connection necessary to earn trust and loyalty. You can have the best of both worlds by supplementing other marketing strategies with cold calling. The best part is you don’t need to do it yourself because a team of professional cold callers can work with you to learn more about your business and create a personable script detailing the unique benefits of your wholesaling company. 

Cold callers will also inquire about your ideal clients to ensure efficient screening. Upon contacting a qualified lead, cold callers will send their contact information to your sales team so that you can focus on negotiating the most profitable deals with every customer. 

Ultimately, a successful wholesaling business comes from strategically investing in the most lucrative marketing tactics available and supporting these efforts with high-quality service. This alone will bring you unparalleled success and uncapped earning potential.

Expand Your Real Estate Wholesaling Business with Call Motivated Sellers

To start building your network, acquiring properties for your portfolio, and turning a profit, enlist the assistance of Call Motivated Sellers. Our team of professional cold callers saves you time and effort by vetting leads for your team. Informing interested buyers and sellers about the benefits of your wholesaling services, we’ll use our expertise to warm up leads, find the best prospects and set your sales team up for success. With cold callers on your side, you can leave the hard work of lead generation to us and focus on other aspects of your business.

Call Motivated Sellers is an American-based real estate cold calling service that can help raise your sales and provide hot leads year-round. We have years of experience cold calling in the real estate industry and access to the best information for buyers, sellers, and agents to help you close more deals.

If you’re ready to leverage the power of cold calling for wholesaling, Call Motivated Sellers is here to help. To learn more about the services we offer, just contact our team today!