Can You Really Wholesale Real Estate With No Cash or Credit?

Imagine going to a car dealership to buy a new car. You walk onto the scorching hot car lot and search “sometimes scavenge” for the perfect car. You find your perfect car and proceed into the sales office to see if you can afford your perfect car. Now imagine that instead of pulling your credit, checking references, and validating employment they just hand you the keys. Sounds too good to be true, well it is unless you’re a real estate wholesaler.

When I first started wholesaling I was told you can wholesale and make thousands of dollars with, No money, No credit, No effort, No Experience, No problem! Just run out and get a property under contract, send out a mass e-mail and wake up the next day with $10k in your bank account. Sadly this is just not the case and it took me 3 years to figure that out.

Do you need credit to wholesale? Not really but it does come in handy, especially if you are buying bank owned properties. Also at some point in your investing career you will want to start thinking long term and buying some income property. To do both of those things you will need to establish and work on your credit. You can create good contracts on properties and sell them for an interest in the contract without a down payment or credit check.

Do you need money to do transactions? I would say probably not, but you DO need money to market for those buyers and sellers to buy from and sell to. Wholesaling, just like any business requires that you market and manage your business properly. It takes the skill, the relationships, and the knowledge to run your business money or no money. Depending on the strategy you use to acquire properties you may not need very much money (or any money upfront). However to say you would need no money would be absurd. The biggest misconception in real-estate out there is that you need a lot of money to get started. Well I’m here to tell you that you don’t but only if you know what you’re doing. Until then you may want to keep your check book around and pay your credit cards on time.