Dale on the Daily

The Beginner's Guide to Wholesaling: Connecting Sellers and Buyers for Profit

• Dale Kerns • Season 1 • Episode 1

Share episode

Wondering how to generate serious side income without massive investment? Real estate wholesaling might be your answer. As someone who's closed multiple deals earning $10,000-$15,000 each, I'm breaking down this accessible real estate strategy from start to finish.

Wholesaling is surprisingly straightforward: you position yourself between motivated sellers and eager buyers, creating value through connection rather than capital. The magic happens when you secure a property under contract with a seller (say, for $100,000), then find an investor willing to purchase it for more (perhaps $110,000). When the deal closes through a title company, you pocket the difference without ever owning the property.

What makes wholesaling particularly appealing is its low barrier to entry. Unlike traditional real estate investing requiring substantial down payments or excellent credit, wholesaling primarily demands hustle, negotiation skills, and market knowledge. I focus specifically on "direct to seller" opportunities—finding property owners who need to sell but aren't actively marketing their homes.

The process admittedly feels nerve-wracking when you're new, but the potential rewards make it worthwhile. Beyond the financial benefits, there's something satisfying about creating win-win situations where sellers get the quick, hassle-free sales they need while buyers find investment opportunities they might otherwise miss.

If you're curious about getting started, subscribe to follow my journey. I'm committed to sharing everything I've learned to help others begin sooner than I did. Having benefited from mentorship when I started, I'm eager to pay it forward and help guide your first successful wholesale deal.

Speaker 1:

Hey, a question I get a lot is what am I doing to make some extra money on the side? One of those things is wholesaling real estate. So today I'm going to explain what wholesaling is after the multiple deals that I've been able to do from just getting started until now. Until now, the wholesaling process, start to finish, is very simple but can be a little nerve wracking and scary when you first get into it. But basically the wholesaler a seller, someone that wants to sell their property, and a buyer. So the most basic and simple understanding of this is you are going to find a seller that wants to sell their house and then you're also going to find a buyer that would buy that house. So you're essentially bringing the seller and the buyer together and then you make money for making that connection to someone that wants to sell their house and someone that wants to buy their house. The type of wholesaling that I'm doing is I'm going direct to a seller that isn't marketing the property. They don't have a real estate agent. They need or want to sell their house for some reason, but they're not marketing that. So that's called direct to seller. The types of sellers and how you find them we can get into in a later video. This video is just explaining what it is, what wholesaling is and how the process works. So basically the process goes through you and a seller. They want to sell their house. You find them and you come to an agreement on a price to sell their house. Let's say that is $100,000. Okay, then you find a buyer that wants to buy this house and let's say that price is 110,000. That price is 110,000. So where we are right now is you have found someone that wants to sell a property. You come to an agreement with that person and you get that under contract to say I'm going to buy your house for a100,000. Now you're not actually buying the house, so don't get caught up on that right now. But you and the seller come to an agreement to buy the house for $100,000.

Speaker 1:

Now the second part of that process is you find a buyer and you and the buyer come to an agreement to say I have this house. If you want to purchase it, it's going to be $110,000. So you and the buyer come to an agreement, get under contract to buy that house for $110,000. Okay, now the process goes through a normal real estate transaction, a title company, to make sure it's all legal. You've got everything you need. We'll go through that more later.

Speaker 1:

And once that house closes, the buyer buys the house for one hundred and ten thousand dollars. The seller is owed $100,000. And then what happens is you make the difference between those two, which in this case is $10,000. And that's how you make your money in wholesaling real estate. So you essentially have an agreement between you and the seller and then an agreement between you and the buyer. The two come together. He pays the 110,000 price, the seller is owed 100,000 and you make what's in the middle, the spread between the two contracts that you're going to have with the two separate people. And in most cases this might be less, it might be more, just depending on what you can get agreed upon with the seller and what you can get agreed upon with the buyer, and how to find these sellers, how the different types of sellers we can get into later, same with the buyers, where to find these buyers, how to vet the buyers, what they're looking for and things like that. It is stuff that you're going to need to know and we will go over that later.

Speaker 1:

But essentially this is the process of what is wholesaling, what I'm doing on the side to make this additional money that a lot of people are asking. What is that? What do you do? And that is essentially it Very simple process at the very basic level of it. Obviously, a lot more goes into getting this done, but essentially, just to recap, you find a seller, someone that wants to sell their property. You find a buyer, someone that will buy that property. You're going to get an agreement between each party, whatever price that is In this example, it was a hundred thousand to the seller. The buyer is going to pay 110. Once the transaction gets closed, you get is what in the middle? The difference between the two? And in this case, for the example, it was ten thousand dollars, and I have done, uh, multiple deals to where we've made ten thousand dollars, fifteen thousand dollars per transaction. Um, there's potential either way. It really just depends on where it is, what type of property, the, the buyer, how quickly do you want it to move, and things like that. And that is the process.

Speaker 1:

Hopefully I've explained this well enough for you guys to understand. This explanation has helped me along the way and understand the process. Explanation has helped me along the way and understand the process. If there's any questions or comments that maybe this doesn't encompass or make the process understandable, please let me know, be happy to reach out and talk to people about it. When I got started, I had people that helped me through the process, and if someone is curious and wants to get started, I'm more than happy to help them get started in kind of a pay it forward type situation. So hope this helps. If you want to watch me along my journey, have questions, please subscribe to the channel. I'm going to have more stuff coming out that has helped me along the way and hopefully will help people behind me to maybe get started sooner than I did, so that they could be a lot further along. Thank you very much. Talk to you soon. See you next time.