Everything You Want To Know About Real Estate Wholesaler Fees
I’ve been getting quite a few questions about how wholesaler fees work, how much they are, whether I need to be licensed or not and so on. So, I figured I would take some time to address these questions formally in an article.
What is a real estate wholesaler fee?
The fee a wholesaler earns is the difference between the price you, as the wholesaler, put the house under contract for, and the price you sell it for to your end buyer (whether that is an investor or a retail buyer). So, if you put a house under contract for $100,000 and sell it to another investor for $110,000, the wholesale fee is $10,000.
Do I need a real estate license to earn these fees?
If you are putting the house under contract yourself and then selling your rights to the contract, then it is my understanding that you do not need a real estate license. I am not a lawyer though, but that is how I understand it.
Do I earn a commission on the sale?
No. Commissions are for licensed real estate agents or brokers. You earn the difference between what you put the house under contract to buy it for and what you ultimately assign the contract for.
If I am part of your wholesaler program, do you get part of the wholesale fee?
Not automatically, no. You can use the articles, tools, and courses that we have on the Real Estate Investor Wiki (part of your Real Estate Investor Bronze Membership) to learn how to wholesale and not pay us anything. So, you can wholesale the deal completely on your own and not pay us a thing.
How do I collect my wholesale fee?
There are several variations, but you can collect it directly from your buyer or, more commonly, collect it from the title company at closing.
Until my next post,
James
P.S. If you want to consistently collect wholesale fees it helps to have a great system and supportive team to assist you and that is what we offer in our Real Estate Investor Bronze Membership. Enroll today.
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