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A closer look at real estate wholesaling and who benefits from it

On Behalf of | Jun 26, 2023 | Real Estate And Zoning

Many types of companies operate throughout Pennsylvania. Some people or businesses operate as wholesalers, meaning they typically buy more than one of something. Then, wholesalers sell purchased items to their clientele in large quantities while making a profit.

What real estate wholesalers do

Within the past decade or so, you’ve likely seen local and national companies offering to purchase anyone’s unwanted properties. Sometimes, these companies market themselves based on buying what they call ugly homes or ones in need of renovations. While not always, these companies typically operate as real estate wholesalers.

Here’s a closer look at how this type of transactional real estate works.

  • A wholesaler finds someone eager to sell their property at a price lower than this home’s market value.
  • Typically after inspecting a property, the wholesaler makes an offer to a property’s owner.
  • Both parties sign a time-sensitive contract agreeing to this property’s sale.
  • The wholesaler finds a suitable buyer before the previously mentioned contract expires.
  • If there are no property ownership problems like a title lien, the buyer closes on a property.
  • The real estate wholesaler receives their share of the profit from the buyer’s purchase.

Why someone might become a real estate wholesaler

Wholesaling properties can be a worthwhile side hustle. Depending on the person, real estate wholesaling can also become a successful business generating a fortune. If you’re good with people and are a natural salesperson, you can succeed in this line of work.

It’s not unheard of to become successful as a real estate wholesaler. But, due to the low profit wholesalers make for each property sale, most people must do a lot of selling or have help from a sales team to become successful.



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