Training Programs & REI Trainers

Busting the 8 Biggest Myths of Wholesaling Houses

In the maze of wholesaling houses, it’s easy to lose your way amidst all the misleading myths. So let’s pull back the curtain and debunk eight of the grandest misconceptions that could hamper your journey to success.

Misconception 1: Wholesaling isn’t legit.

This one’s a big misunderstanding! Wholesaling is absolutely legal, as long as you navigate within your state’s laws. The crux lies in legally binding contracts and assigning them to a new buyer for a fee, ensuring you’re not overstepping any legal boundaries.

Misconception 2: You need a money mountain to start wholesaling.

Here’s the truth: Wholesaling doesn’t demand a heavy wallet. When you architect your deals right, you’re merely passing the contract, not buying or overseeing the property. This way, the risk is low, and the need for a chunky monetary investment is minimal.

Misconception 3: Errors in wholesaling are huge and pricey.

This misconception stems from the confusion between wholesaling and house flipping. As a wholesaler, you’re a matchmaker between buyers and sellers, not a repairman. So, you’re not shelling out big bucks for fixing up houses; you’re brokering deals and taking a slice of the pie.

Misconception 4: Wholesaling eats up all your time.

In reality, wholesaling is one of the fastest routes to profit in the real estate arena. The usual process involves securing a property deal, getting a contract, transferring the contract, and reaping your fee—often all within a few weeks.

Misconception 5: The deal drought is real.

Contrary to popular belief, the real estate landscape is sprawling, and deals are aplenty. The key is knowing the right hunting grounds and methods to track them down. Proper research and effective use of online tools can lead you to a treasure trove of opportunities.

Misconception 6: The wholesaling space is too crowded.

While it’s true that wholesaling has many takers, don’t let this put you off. There’s a rich feast of deals for everyone, and many self-proclaimed “wholesalers” lack the drive to hustle. Stand out by being active and enthusiastic.

Misconception 7: The buyers’ market is barren.

Quite the opposite! Rehabbers or fix & flippers are perpetually on the lookout for new properties. They value wholesalers who scout potential houses, freeing them up to concentrate on refurbishing and reselling.

Misconception 8: Wholesaling demands extensive real estate experience.

Our final myth is a real misnomer. While experience can be helpful, wholesaling can also be a fantastic springboard into real estate. It’s all about being resourceful, grasping the basics, and progressively expanding your network and knowledge base.With these myths busted wide open, the path to successful wholesaling should appear far less intimidating. So get ready to immerse yourself in the exciting and rewarding universe of wholesaling real estate!

About the Author Sean Flanagan

Sean Flanagan is a Christian family man, MMA Lover, Jiu-Jitsu and Muay Thai practitioner and self-confessed coffee addict. Lover of everything real estate related and a coach to successful students nationwide. He is the author of PRE-Wholesaling for Fast Cash, Founder of Lucky Buys Yucky Houses ®Motivated Seller Marketing Program , Creator of Pre-Vacant House Goldmine, and also of Abandoned House Secrets.

Sean Flanagan

Sean Flanagan is the CEO and founder of the Investor Lab, a real estate education and publishing company which has trained, coached and mentored thousands of aspiring real estate investors towards successful careers. Investor Lab, LLC was meticulously designed to serve as a comprehensive resource center catering to the distinct needs of real estate investors.

A sought after speaker, real estate coach and published author, he has appeared on major networks such as ABC, NBC, CBS and FOX.

Prior to launching the Investor Lab, Sean founded a now nationally recognized real estate brand which was a pioneer in the industry, introducing many investors to “outrageous marketing” combined with the power of broadcast TV commercials, radio ads and billboards used to saturate a real estate territory and quickly become the most recognized real estate investment company in the area. The brand is now licensed by real estate companies in over 150 markets across the country.

Scroll to Top