Arcane Properties

Talking About The Real Estate Wholesaling Business

To start a real estate wholesaling business, just how much will you need?

Are there any hidden expenses which will cost you more than you think in starting a real estate wholesaling business, or will it be the ultimate in lean startups?

The Real Estate Startup

The good news is that with little or no money down, individuals can get started wholesaling houses, and having a formal company is not a necessity. This can and does make it faster and much more affordable getting started wholesaling than it is becoming a Realtor.  Companies like Arcane Properties LOVE buying properties from wholesalers.  If you have a property please call us at 716.800.1414

Of course, you will have to be prepared to put in some sweat equity and effort, and you will also have to have made significant strides in your real estate education learning, but on the other side you aren’t going to require a lot of expensive equipment, a decorated office, or other trying startup or overhead expenses. The truth is you can just get out in the community and find deals, and do the networking you have to in order to get buyers for those deals. These efforts will allow you with a virtual non-existent marketing budget, to begin pocketing some very large paychecks.

The motto, “investment is best when it is businesslike”, is attributed to Warren Buffett and Benjamin Graham, his mentor. To real estate investing, this quote accurately applies, and not simply analytically, and out of investing removing all emotions entirely. Let’s face it. If he hadn’t formalized Berkshire Hathaway, his investing juggernaut, Warren Buffett would not be as famous and as wealthy as he is today. Versus simply being a lone sole that is flipping properties in your own name, there are truly many benefits to an actual real estate wholesaling business being formed by you. Some of these benefits will include:

  • Tax breaks
  • Liability reduction
  • Automation
  • Scaling your investing of real estate
  • Ease of succession
  • In a business and brand, building additional value

These can add up to wealth building gains, and significant additional income as well. And you are just continuing to do what it is you are doing, however, you are now doing it under a business umbrella.

So, to begin a property wholesaling business, just how much will it cost?

Startup Costs For Real Estate Business

Additional costs can be incurred in starting a real estate wholesaling company. What we are specifically referring to here are startup costs. Regardless of just how big you go, some of these may be static, while others are going to vary upon the scale set at the start. Still others are going to be determined by the choice of the quality of the services and vendors you select.

Included in some of these expenses might be:

  • Branding materials and logos
  • Incorporation
  • Accounting help
  • Business mailing address
  • Business phone line
  • Real estate company website
  • Solid business plan

Of course, the more of these items you can handle yourself, the more you will be able to contain your costs. For example creating your own logo, filing an LLC online, formulating your own business plan, etc. But always keep in mind that you should always seek help and assistance when you need it.

Real Estate Marketing

You simply must have a real estate marketing plan if your intention is to go bigger. In truth, you really should have one in place even if you are planning only a couple of flips per year. The good news is that there are a wide variety of different options that are available to you. Of course, some do work better than others do. And for those just starting out, some are better suited. Some of these options up for your consideration might include

  • Cold calling
  • Direct mail
  • Email marketing
  • Driving for dollars
  • Real estate blogging
  • Social media
  • Press releases
  • Pay-per-click advertising
  • Online real estate classified ads
  • Print magazine advertising

If they work smart, and about maximizing their leads are very diligent, with very little, real estate wholesalers can truly accomplish a lot. They will however blow their budgets and be left scrambling to make deals just to survive, if they don’t exercise caution in their decisions. The path to success is found in a good marketing mix being maintained, forecasting accurately costs and ratios of closing per lead, and of course, understanding and recognizing just when one should seek out expert help. At the start, it is vital you create a reasonable budget for marketing that you can and will adhere to for several months with consistency. This is extremely important to the overall success of your operation.

One other important consideration is to make certain that in your ongoing budget, marketing isn’t the sole consideration. You want to be always seeking to have the finances to both grow the business, and also to handle all unexpected emergencies as well.


Beyond investing in your real estate education, getting involved in real estate wholesaling doesn’t really have to cost you too much. Those who are truly serious about these efforts should however be focused on properly organizing them as a sound business.

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