In this video Matt breaks down what wholesaling real estate consists of.
Is wholesaling real estate a real thing? Are people actually doing this in real life? how much money can you make wholesaling real estate? what does it take to become a real estate wholesaler?
Bird dog/finders fees usually are a smaller fee (compared to wholesaler fee). The reason for this is the bird dog has only found a potential deal – they haven’t negotiated and came to an agreement with the seller – they’ve simply found a property with potential or a motivated seller.
A wholesaler actually get the property under contract and either assigns (flips) the contract to someone else (while collecting a fee) or they may even double close it. (The close on the property and then immediately resell it).
Why would someone wholesale real estate? There is a variety of reasons – primarily the wholesaler may not have the time, money or team to execute on this property – they may have just stumbled into an opportunity outside the scope of their usual investing strategy.
Many wholesaler can frequently collect a 10% fee. (If the property under contract is $300,000 they collect a $30,000 finders fee.
Why would someone buy from a wholesaler? It’s simple really – if they can still profit from it why wouldn’t they want the opportunity? Take real estate flippers – many of them are really in the renovation business and have built a team and system to execute the renovation side of the business – however they may not have built the team or have the skills to find the distressed properties that they need in order to flip. They simply outsource the deal finding part of the business, and focus on their core competencies.
Matt McKeever is a CPA, CA and Real Estate Entrepreneur in London, Ontario. On this YouTube Channel Matt will walk the viewer through how to invest in real estate using such strategies as the BRRRR method while also documenting his personal experience as a real estate investor. Matt began investing in real estate at age 25 by purchasing a student rental near Fanshawe College. In 2016 he’s acquired over 25 units.
As well on this channel Matt will share his personal monthly spending and discuss the strategies and tactics needed to reach financial independence (retire early) at a young age. We’ll discuss such topics as safe withdrawal rates, how to build passive income streams and how to reduce your personal consumption.