3 Steps to make money Wholesaling Real EstateFlipping houses is all the rage, fed by several popular television shows with high profile flipping personalities. It looks like fun, and it can be. You can use the fix-and-flip strategy, but this article is about wholesale flipping. The wholesaler has no intention of doing anything to the home. They buy and resell the homes with a profit for themselves in the middle.
The wholesaler’s value to their customer is in locating properties that their buyer wants and can buy at a price below current market value. Since their buyers are usually either fix-and-flip investors or rental home investors, everybody involved is market-savvy, and the wholesaler can only add value to the transaction if they can locate properties that their buyers cannot or are not willing to make an effort to locate.
The Fix-and-Flip Buyer
This is another real estate investor who wants to buy properties that need repairs and rehab, usually a significant amount of work. They profit through buying right and from the markup on their rehab work. As they often sell to a rental investor, this runs everyone’s numbers down, as that rental investor buyer wants to buy a value property as well.
The Rental Home Investor
This is the end user of the property, intending to profit from cash flow and appreciation in value over time. The rental investor buyer wants a tenant-ready property, not wanting to do any work on it other than minor cosmetic repairs. They also want to buy below market value to lock in a profit at the closing table.
Step 1:  Find a Buyer
This is where the “back to front” in the title applies. You start with the deal-ending sale to work your way backward to the purchase of the home. The successful wholesaler holds a property for a very short period, intending to profit from their ability to locate deals and negotiate a price that will provide a profit in a quick sale.
You must know approximately what a buyer will be willing to pay for homes and in what neighborhoods before you begin your property searches. To gain this knowledge, you must know some buyers, and this is why successful wholesalers build buyer lists. They advertise in classifieds, on Craigslist, and some join real estate investment clubs to meet other investors. They meet and get information from rental property investors about their property location, cash flow, and appreciation requirements. Having ready buyers with cash and knowing what they want, then the wholesaler can move backward to their profit desires before they seek out properties.
Step 2:  Set Your Profit Goal
Using an example, you have a rental property investor buyer always seeking properties. You know her favorite neighborhoods, home sizes, and price range. You also know that she wants to buy homes at a 10 percent or better discount from current market value, and they need to be rent-ready.
You want to set your profit goals, and this is individual, and it’s all up to you, though you do have to respond to market forces. You could just set a dollar amount per deal, as wholesaling is a fast turnover profit if you line up buyers first. Maybe you want to make $5,000, or maybe a percentage of the purchase or sale price. It’s your decision. Be careful and don’t be too optimistic, as you want to allow for error.
Step 3:  Locate and Buy a Property
Now you start marketing and working your sources for distressed homeowners who for whatever reason need to sell their homes but haven’t been able to do so. Maybe they have a job opportunity and need to move in a hurry. Perhaps they have a need for money for an emergency. Whatever the reason, you must find someone with enough equity in a home to meet your goals and a need to sell quickly.
You start at the tail end with what a buyer wants and what they’ll pay. Then you decide on your profit goals, and you go out and find a property, negotiating a price that will meet your profit goals and the goals of your rental investor buyer. This is the recipe for successful real estate wholesaling from back to front.
Wholesaling properties can be a great way to make money with little to no investment. Learn 2 ways to fund a wholesale real estate deal with little to no cash.

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Newest Key West Commercial Properties on the Market

Prime Mixed Use Income Producing property for sale. Total of 6 units. There are 2 Commercial units on ground floor facing Truman Ave. Both Commercial spaces now occupied by the Seam Shoppe, a long term, stable tenant. On the 2nd floor there are 4 good size apartments. Each 1bedroom and a loft bedroom and 1 bath. Each has use of large, outdoor deck in back. Potential Gross rental income approx. $15,000/mos.Total of 6 Water and Electric Meters. Rear parking lot for 4 + or - cars. Building in good condition and well maintained.Excellent Replacement Property for a Buyer looking to perform a 1031 Exchange.Owner may consider Seller financing to a Qualified Buyer at Seller discretion. $2,150,000 Active

1109 Truman Avenue KEY WEST, Florida

4 Beds 6 Baths 4,410 SqFt

Prime retail location on busy 300 block of Duval St with great visibility at the corner of Eaton St. Vacant and available now for long term, quality tenant. Perfect for Retail or small Restaurant.Unit B is approx. 880 sf. and has been renovated including new flooring, ceiling tiles, lighting, several sinks plumbed in with front reception area and prep & storage rooms in back. Exterior of the entire building has been renovated as well including new facade and steps. Unit B has a private ADA compliant bathroom. Thousands of tourist walk by daily and nightly. Ample customer and employee parking in the rear. Great mix of tenants including Wendy's, Wicked Lick Ice Cream, Kermit's Key Lime Pie and a large space dedicated to a Bank of America ATM machine for quick cash.Base rent is $80/sf plus $24.40/sf. NNN = $7,656/ mos. rent quoted, plus additional Florida Sales Tax equals total rent per mos. $7,656 Active

335 Duval Street B KEY WEST, Florida

2 Baths 6,495 SqFt

Opportunity to purchase prime Duval St. Real Estate with a very valuable, full, unrestricted 5COP Liquor License BEV5400029 included. An opportunity like this is rarely available anywhere in Key West or Monroe County. State issued Liquor License alone known to have sold recently well over $1 Million. Terrific Upper Duval St. corner location with high visibility from 43' frontage on Duval St. There is all day & night foot traffic from many Hotels & Guesthouses in the immediate area. Near the Southernmost Point in Key West. Historically this property has been a popular Restaurant & Bar and Retail store. Very solid 2,760 sf. CBS Building is currently configured with retail display space and a large, unused kitchen with existing Hood. There is also storage on 2nd floor in the attic. Additional storage, restroom and former Back bar with access off Amelia St.Large corner lot at Duval St. and Amelia St. with 98.75' frontage on Amelia St. x 43.18' on Duval St. Same owner since 2012 motivated to sell, Bring Offers! Existing business not included in sale. $4,500,000 Active

1114 Duval Street KEY WEST, Florida

2 Baths 2,760 SqFt

Buy a Bar & Liquor Store in Key West! Dons' Place is the opportunity to purchase an Iconic and Landmark Indoor and Outdoor Bar & a Liquor Store with a Drive Through! This package is rarely available in Key West or anywhere in the Keys. Big bonus is that is includes a very valuable, full, unrestricted & transferrable 5-COP Liquor License that includes Tobacco & Retail Beverage with no food requirement! BEV 5400161.Monroe County Liquor Licenses are valued well over $1 Million and 2024 County Assessed Values of the two real estate parcels is over $2.5 Million. Total Asset value alone is over $3.5 Million.The Indoor Bar and adjoining Liquor Store are in the main corner, CBS 2,396 sf. building along with men's and women's restrooms, office & storage. The building also operates maybe the only drive through, pick up window for Beer, Wine and Liquor left in the Keys! Several major repairs include new AC unit, new Bar and plumbing. New roof in 2022. There is an assuring backup propane Generac Generator with automatic transfer. All Furniture, Fixtures and Equipment included.Outside is another 1,588 sf. covered outdoor Bar for entertaining, weddings, special events and parties. There is bar and table seating and a separate small office/storage building. The Bar and Liquor store are popular with both tourists and locals. The business is family managed with absentee owners and a few long time employees. Current Bar hours are 7am until 4am, 7 days per week. The Bar and Liquor Store are a money making operation with so many opportunities for growth for a new owner. Currently there is no food service on site, only pre-packaged snacks sold, but HNC -1 Zoning allows Restaurants and likely Food Trucks for added income.Same absentee owners since 1998 and first time listed for sale. Sellers may consider Seller financing to a Qualified Buyer at Sellers discretion. $4,750,000 Active

1000-1006 Truman Avenue KEY WEST, Florida

2 Baths 2,756 SqFt


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