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Find Paroma HereTop Illinois real estate wholesalers earn up to $82,000 per year. With rising home prices and strong job market predictions for 2024, you can earn even more. Even as a beginner, you can earn up to $53,071 per year in wholesaling real estate in the Prairie State. Apart from market conditions, your success will depend on how well you understand the wholesale real estate laws in Illinois.
Wholesale real estate is an investment strategy. Here, the wholesaler acquires the contract from a seller and sells it to an interested buyer.
Wholesalers typically look for home sellers who want to unload distressed properties. Such sellers are usually interested in selling as is for cash. Also, they are ready to settle below the fair market value (FMV) of the property.
The wholesaler enters into a contract with the seller for a lower price and assigns the contract to a buyer for a higher price. In turn, the wholesaler charges the price difference as the service or the assignment fee.
A homeowner wishes to unload a distressed property without investing in repairs. Also, the owner is ready to sell below FMV.
A wholesaler enters into a contract with the homeowner and offers $120,000. The wholesaler then finds an investor from their buyer’s list who offers $140,000 for the property.
The investor takes over the contract by paying $20,000 to the wholesaler as the assignment fees.
Anybody with knowledge of the real estate market can be a wholesaler in Illinois. However, you need to be systematic and prepare well for the deal to guarantee success.
Here’s how to wholesale real estate in Illinois in 7 steps:
Find a mentor or a coach who can introduce you to wholesaling real estate in Illinois. Attend seminars and networking events to learn how to assess Illinois housing market trends.
Furthermore, you can enroll in a wholesale real estate course to strengthen your basics. These courses teach you how to build a solid marketing strategy and help you map an investment plan.
After you grasp the fundamentals, learn about Illinois real estate wholesaling laws. Consult a Illinois real estate attorney to learn about the legalities of wholesaling homes in the Prairie State.
With a diverse buyer’s list, you can offer faster closings and attract more home sellers. Your buyer’s list should include Illinois cash buyers, rehabbers, rental property owners, and other wholesalers.
Here’s how you can build a diverse buyer’s list:
Typically, most sellers want to maximize their net proceeds, even if it means waiting longer. However, you need to target sellers who want to close quickly and are ready to sell below the FMV.
For instance, a seller on the verge of foreclosure or someone who wants to sell a distressed property in Illinois. Here’s how you can find your ideal seller:
Before you make an offer on a property, try to gather as much information as you can. Determine the fair market value of the property by running comps.
While making an offer, account for Illinois closing costs, your fee, the buyer’s holding costs, and their end profit. Communicate to the seller that you are a real estate wholesaler and not the buyer.
» Free Home Value Calculator: Find your home’s value within a minute.
The wholesale real estate contract in Illinois contains the asking price, the closing timeline, and other contingencies.
Remember to include the inspection contingency clause while drafting the contract. This will allow you to back out of the offer if serious defects are found during the inspection.
As a wholesaler, you need to decide whether to assign the contract to an investor or an eligible buyer. In both cases, there is a “contract handoff”, where you give authority over the contract to the buyer.
Finalize a buyer from your buyer’s list. Pitch the house to the buyer based on its FMV report and the after repair value (ARV) estimate.
If the buyer agrees, you assign the contract to them and transfer the ownership of the purchase agreement. In return, you get the assignment fee and relinquish your rights over the contract.
The assignment fee is the difference between the amount you pay the seller and the amount you get from the buyer.
At this stage, you sign the contract and formally hand it over to the buyer. The buyer can repair the home or re-sell it to another investor.
Depending on whether you find the buyer or not, there are two ways to close real estate wholesale deals in Illinois.
Yes, wholesaling real estate is legal in Illinois as long as you follow the real estate laws of the state.
As a wholesaler, you should be transparent about your role in the transaction. Remember, at no point should you act like a licensed real estate agent representing the seller or the buyer.
The contract should clearly state that you have an equitable interest in the property and don’t wish to buy the house itself. Apart from that, you will have to furnish proof of funds to clearly demonstrate your interest in the property.
While wholesaling real estate in Illinois is legal, here are a few things you should steer clear of:
No, you don’t need a license to wholesale real estate in Illinois.
However, having a real estate agent’s license can have added benefits. You will have access to the MLS to search properties for wholesale. You can also use the MLS to find the end buyer.
Yes, wholesaling real estate in Illinois is profitable.
On average, real estate wholesalers in Illinois earn $53,071 per year. The number can go up to $81,882 for the top earners. However, if you are familiar with the basics of the Illinois wholesale real estate process, the sky is the limit.
An average wholesaler earns $2,000 to $7,000 in the assignment fee per deal. For experienced wholesalers in Illinois, this figure is between $15,000 and $20,000. So, it shouldn’t take you a lot of transactions to make a good profit.
Wholesale real estate requires low capital investment and offers a simple learning curve. However, like all things, this investment strategy has its pros and cons.
Yes, real estate wholesaling in Illinois is worth all your efforts. Wholesaling involves minimal expenses and helps you earn more profits. You also build a strong network of Illinois real estate professionals, which can help you explore other avenues of real estate investments.
Your success in wholesaling largely depends on searching for the right property and quickly closing the deal. Build a solid list of buyers to ensure faster closing.
To find properties to wholesale in Illinois, view listings on real estate sites like Houzeo, Zillow, Redfin, Realtor.com, etc. These websites have advanced search filters to help you find foreclosures, as-is homes, etc.
With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of homes for sale in Illinois on Houzeo.
» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
| # | City/County | How to Wholesale Property Near You |
| 1. | Palos Heights, IL | Wholesale Real Estate in Palos Heights |
| 2. | Prospect Heights, IL | Wholesale Real Estate in Prospect Heights |
| 3. | Woodstock, IL | Wholesale Real Estate in Woodstock |
Yes, you can wholesale real estate in Illinois without a license. Ensure to convey to the buyers that you are selling your rights over the wholesale contract and not the property itself.
Here are the ways to find wholesale properties in Illinois:
1. Browse properties on the MLS
2. Network with real estate professionals to find properties
3. View Illinois homes for sale on real estate websites like Houzeo, Zillow, and Trulia
Yes, you can wholesale as a Realtor in Illinois as long as you comply with the existing wholesaling laws of the state.
No, you don't need a real estate license to wholesale real estate in Illinois.