The basis of the wholesaler’s fee is the amount of money you sell the house or property for that is over the amount of the contract you have written up. For example, if you have a contract for $100,000 and sell the property for $125,000 then the wholesaler’s fee will be $25,000.
This fee will go to you as the wholesaler, and any profit you can make is good when selling property of any kind. While you don’t necessarily have to have a real estate license to do this, you should check with your lawyer to make sure beforehand.
If you choose to go with a program that puts your contracts out to investors and buyers, you will have to pay a percentage to that program for the opportunity. If you decide to sell your contract on your own, the full amount of the wholesaler fee goes directly into your pocket.
While this sounds like the better of two deals, finding investors or buyers can be more of a job than some people can handle and they end up losing a lot of money as they can never sell their contract for the amount that they have set it for.
While it is true that you can do this all on your own, it’s always good practice to have some help when you are doing things like this for the first time. Finding a good program to help walk you through all the aspects of being a wholesaler can be the difference between getting a fortune built up and fall short of paying your own bills in the future.
Take the time to research wholesaler programs and find out which ones are right for you. Never take anything at face value as there are a lot of scams out there as well.
If you want to become a wholesaler there are plenty of sites online that will help you in making the right decisions. Just be aware of offers that sound too good to be true as they usually are. Take the time to educate yourself on the wholesaler industry and keep a close eye on the current market states as well so that you can get the biggest return possible.