Wholesaling Land: Is It a Good Way to Get Into Real Estate?

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Written By Justin McGill

DealBloom aims to share the latest tips and strategies to help realtors, brokers, loan officers, and investors navigate the world of real estate.

I was interested in getting into real estate, but I wasn’t sure if wholesaling land was a good way to go. After doing some research, I decided that it could be a great option for me. Here’s what I learned about this type of investment.

What is Wholesaling Land?

Wholesaling land is the process of finding a piece of undeveloped land, negotiating a price with the seller, and then reselling the land to another buyer for a higher price. The profit comes from the difference between the two prices.

Wholesaling land can be a great way to make money in the real estate market without having to put up a lot of money for the purchase price of the land.

Wholesale real estate includes undervalued houses because a wholesaler pays less for them than comparable residences would go for in the same community.

Because these types of properties are usually outdated or in poor condition, sellers are unable to sell them for a good price.

Investors who buy properties and then sell them for a profit are called wholesalers. These individuals often purchase a property, make some improvements, and then sell it for a higher price.

Wholesalers focus on properties that are in need of repair and are not fit to be listed on the MLS.

These properties are in bad shape, having been damaged either by a fire or a storm. They may also be in an unfinished state, having been abandoned by their previous rehabber due to a lack of funds.

Wholesalers can focus on these types of properties to find good deals for investors.

You can find wholesale real estate through online listings, classified ads, and by contacting real estate agents.

Wholesale real estate is a great option for newbie investors. You don’t need a lot of money or expertise to get started. You can find wholesale properties online, in classified ads, or by contacting real estate agents.

As you become more confident and wealthier, you may want to start investing in property. Or, you might prefer wholesaling properties. Wholesaling can be a great way for investors of all experience levels to make money.

When you think of real estate investing, you probably imagine yourself as a real estate mogul, purchasing rental properties and then selling them for a hefty profit.

Unfortunately, these solutions are typically very expensive, and many people simply don’t have the funds to afford them.

If you’re looking to make some extra money in the real estate investment market, but don’t have a lot to invest, you may want to consider investing in wholesale deals. Wholesale deals are a great way to make money in real estate without investing much of your own capital.

Whether you’re just starting out or you’re an experienced real estate investor, here’s everything you need to know to get started in wholesaling.

How Does Wholesaling Land Work?

Wholesaling can be an excellent strategy for investors who are looking to make a quick profit. By following a few simple steps, it is possible to receive your assignment fee in as little as a few days. This makes wholesaling a great option for those who want to make money in a short amount of time.

When you wholesale, you are in complete control of the number of deals you want to do. You can easily scale up or down your business as needed.

This is appealing to many investors because it allows them to start small and gradually grow their business as they gain more experience.

Wholesale real estate is a great way to start investing without committing a lot of time and money. You can wholesale as few or as many different properties as you’d like, and if you’re only doing it part-time, you’ll still be able to make a nice profit.

When beginning a real estate investing career, new investors are quickly immersed in activities that are essential to any investment business. These activities include marketing, networking, conducting thorough research, and closing a real estate investment.

By immersing themselves in these operations, novice real estate investors learn the intricacies of the property market and are better able to find more lucrative investment opportunities.

Since beginner real estate investors often have limited funds, or are working on building their credit score, they can still take part in real estate investing by becoming a wholesaler.

Wholesaling is a great way to get started in real estate investments, even if you have less than perfect credit or limited cash.

This allows wholesalers to make a profit without having to put any money down on the property.

Because of this, having the necessary qualifications for a loan, such as an income or a good credit rating, isn’t a problem.

Wholesale properties are a great way to gain valuable experience in the real estate world. You can learn about different markets while saving money and building your credit.

Wholesaling is a great way to finance your real estate investments, but seasoned real estate investors often use it to fund other kinds of projects.

Wholesaling real estate is a great way to quickly replenish your personal capital so that you can continue to invest in other types of properties. By understanding the process and following a few simple steps, you can easily take advantage of this strategy.

3 Types of Wholesale Real Estate Investments

There are three types of property a real estate investor may wholesale: land wholesaling, residential wholesaling, or commercial wholesaling.

Let’s review each of these investment options so you can better understand their differences and decide which may be most appealing to you.

Wholesaling a plot of land is when a real estate investor gets a contract on a property that may or may not be occupied.

Any current buildings on the property will be demolished and removed from the property. The focus of this deal is on the land itself and its future development potential.

A wholesale investor will purchase one of three types of property, depending on the current real estate market and their goals.

  • Undeveloped land that does not have utilities and structures
  • Developed land with basic utilities
  • Properties with existing structures that need to be torn down

Wholesalers who work with a large number of developers are best suited for this type of investing. These investors buy land and turn it into buildings, houses, or other investments.

When wholesaling land, it’s essential to be aware of any restrictions or regulations that may apply. Zoning laws, for example, can restrict what can be built on a property and can also impact what you can sell the property for.

A residential wholesaler focuses on single-family homes and multi-unit buildings with up to four apartments. These could include duplexes, triplexes, and quadplexes.

These properties are in need of repair, or the owners are in financial trouble.

Many sellers in difficult situations are willing to let go of their property quickly for less than market value. This may be due to financial hardship, divorce, terminal illness, or the death of the homeowner.

As a residential wholesaler, being aware of these local market conditions can help you spot homes that are neglected and available at a discount.

By understanding the market, you will be able to find properties that are below market value and offer potential sellers a fair price for their homes.

Most commercial properties are valued at their level of income, or how much revenue they generate.

You’ll be looking for properties that are being rented for below market value. This could be because the current occupants are paying lower-than-market rent, or because there are a high number of unoccupied units.

By increasing rental income while keeping expenses low, you can increase the value of the property.

This is one of the most important things to remember when considering a wholesale real estate investment.

You can increase your rent on current residents, get higher occupancies, or reduce your expenses.

In commercial real estate investing, the most common types of properties to wholesale are apartment buildings, office complexes, and self-storage facilities.

To be a successful wholesale investor, you need to identify buildings that underperform compared to others in the area.

By knowing the market well, you will be able to show your investors the potential of the property and make a profit from the deal.

Pros and Cons of Land Wholesaling

Wholesaling land has many advantages, but there are also some drawbacks.

Let’s start with the benefits:

  • Lower financial risk
  • Lower competition
  • A simple landscaping change could completely transform the property and boost its resell price.
  • Potential gain of over 10% ROI

Now for the downsides:

  • The amount of profit-per-deal in wholesaling land is smaller than in wholesaling houses.
  • There are fewer buyers for vacant lots compared to houses and buildings.

Is Land Wholesaling a Good Investment?

Wholesale real estate is one of the simplest and fastest ways to start investing in the real estate market. This is because it requires very little money upfront.

If you’re interested in investing in the wholesale market, it’s a great place to start. You can learn about the market and hone your negotiating skills in a relatively short amount of time.

While it takes some hard work, wholesale real estate investing can be a relatively low-risk way to earn some extra income.

To be successful at wholesaling, be prepared to invest a lot of time and effort into building a strong list of potential buyers and sellers, network with them, and curate your list over an extended period.

By taking these steps, you’ll be well on your way to success in the wholesaling business.

More Tips on Wholesaling Land

Before you can make an offer on a property, it’s important that you have an understanding of the market and can identify what properties are being sold at deep discounts.

In the good old days, you would have had to use a local and licensed agent to sell your home.

But times have changed.

Now all you need is web-based data software.

If you’re interested in wholesale land and properties, you need to be able to act quickly. These types of deals don’t last long, so it’s important to be able to negotiate and lock up a purchase contract before someone else snatches it up.

And finally, it’s essential to have a strong network of investors and buyers who can wholesale properties when you find deals.

When wholesaling land and properties, it’s important to have a strong network of potential buyers. Keep in mind that some cash buyers may be interested in investing in land specifically. Asking others in your network can help you determine who the majority of your potential buyers are.

Sourcing vacant lands and lots is another additional revenue source for wholesale real estate investing.

How to Get Started Wholesaling Land

1. Find a motivated seller. This is usually the hardest part of the process. You can find motivated sellers by networking with other investors, looking for properties that are in pre-foreclosure, or marketing to homeowners that are behind on their property taxes.

2. Make an offer. Once you find a motivated seller, you will need to make them an offer that is below market value but still high enough that there is room for you to make a profit when you resell the property.

3. Get the property under contract. This means that you and the seller have agreed on a price and terms for the sale of the property.

4. Find a buyer. This can be done by marketing the property to other investors or listing it on a website like MLS (Multiple Listing Service).

5. Close the deal.

Is Wholesaling Profitable?

Wholesaling can be profitable if done correctly, but there are also many risks involved. Wholesalers must be able to find properties that are undervalued and then sell them quickly for a profit. They must also have the knowledge and experience to negotiate good deals with sellers and buyers.

Is Wholesaling a Good Way to Get Into Real Estate?

Wholesaling is a great way to get into real estate. It is a low-risk, high-reward strategy that can be very profitable. The key to success in wholesaling is to find motivated sellers and negotiate good deals.


Wholesaling land can be a great way to get into the real estate market. It’s important to do your research and understand the process before you get started. If you’re willing to put in the work, wholesaling land can be a profitable endeavor.

Justin McGill