How to Wholesale Real Estate in Florida (2024 Updated)
In this article, you’ll learn how to wholesale real estate in Florida.
We will teach you best practices for wholesaling real estate in Florida and, most importantly, how to protect yourself and your business.
Keep reading to learn everything you need to know about wholesaling real estate so you can start wholesaling houses in Florida today.
Is Wholesaling Real Estate Legal in Florida?
One of the most commonly asked questions real estate professionals in Florida get is, “is it legal to wholesale real estate in Florida?” The short answer is yes.
However, when beginning your real estate investing journey, it is important first to understand the risks of wholesaling real estate.
Wholesaling real estate is the process of putting a property under contract and marketing the contract to an end buyer rather than the property itself.
Many wholesalers face legal trouble when they use the wrong language when marketing their properties under contract to end buyers. Don’t make this mistake.
Remember that only licensed Florida real estate agents can sell a property and make a commission. Wholesalers sell contracts and get paid through an assignment fee.
The first step to starting a real estate wholesaling business in Florida and protecting yourself from any legal repercussions is to understand Florida real estate wholesaling laws.
Review Florida Statute Chapter 475 before embarking on your business journey to ensure your prospective business practices are above board.
Ensure the right verbiage in your real estate purchase agreements by having one of the best real estate attorneys in Florida review your documents.
How to Wholesale Real Estate in Florida?
When learning how to wholesale houses in Florida, be aware that you can utilize two different methods.
You can either do a contract assignment or double closing. We will discuss these methods in detail below.
When it comes to wholesaling real estate in Florida, know that you don’t have to be physically present to get the job done. You can do everything virtually.
Contract Assignment
When it comes to the real estate wholesaling process, one method wholesalers utilize is contract assignment.
Contract assignment means that you get a property under contract from a motivated seller and then assign the agreement to an end buyer.
Florida wholesalers can legally assign a contract to another end buyer if:
- There is no language in the agreement prohibiting assignment
- The assignment will in no way violate public policy
- The assignment will not violate state or federal law
When building your real estate wholesaling checklist, don’t forget to include finding an investor-friendly title company in Florida.
Not all title companies are familiar with the contract assignment or double closing processes.
Double Closing
A double closing is a process that involves buying a property from a seller and then turning around the same day and selling the property to an end buyer.
If you want to double close as a wholesaler, you must obtain funding and close on the property before turning around and closing again with your end buyer.
Florida hard money lenders specialize in “transactional funding,” a short-term loan (often 24 hours) that allows you to close without violating Florida laws.
These loans are much easier to obtain than traditional loans and don’t require a high credit score or a history of employment as long as you can show the lender your contracts.
Virtual Wholesaling
When learning about wholesaling real estate step by step, many investors forget about virtual wholesaling. Virtual wholesaling in Florida is possible in today’s digital age.
You can put properties under contract, market them to end buyers, and even close on them without stepping foot in the Sunshine State.
When wholesaling virtually, it helps to build a team of local real estate professionals before getting your first property under contract.
Most importantly, you want to locate a wholesaling-friendly title company and a reliable contractor or Florida home inspector that can walk potential properties and give you a rehab estimate.
The title company can either wire your proceeds or send you a check in the mail after closing.
And one of the Florida investor-friendly real estate agents can help you have motivated sellers sign contracts, show properties to potential buyers, and oversee closings.
How to Find Properties to Wholesale in Florida?
How do wholesalers find properties? To get started wholesaling houses in Florida, you need to search for various types of motivated sellers who need your help.
A motivated seller owns a property but does not have the extra funds to fix it up or the time to list their property and field offers.
Instead, they need quick cash and someone to take the property off their hands.
To find these sellers, you can use a few strategies, which we will discuss below.
Buy Florida Distressed Seller Leads
If you have money for your business, you can cut out a lot of steps by buying motivated seller leads from one of the best lead generation companies for real estate investors.
Many businesses specialize in finding motivated sellers in different situations. Some examples include:
- pre-foreclosure
- unpaid electric or water bills
- back taxes
- recent divorces
- probate
Instead of reinventing the wheel, you can take advantage of companies that have spent years perfecting their lead generating process and making it cost effective.
Especially if you are only starting, it may be cheaper for you to buy leads from professionals than building your own lead generation channel from scratch.
These companies often charge on a pay-per-lead basis, or they might have a weekly or monthly fee you pay to generate fresh leads on a recurring basis.
The price may vary depending on the local real estate investing market in Florida — in some cities leads are more expensive than others.
Look into REB Leads, a program created by Real Estate Bees to supply wholesalers with industry’s most affordable and highest-converting motivated seller leads. Sign up for it now.
Hire an Agency to Do Marketing for You
You can take an even more hands-off approach by hiring an agency specializing in marketing for real estate investors. It will help you build and execute your marketing strategy.
Many digital marketing agencies out there work with wholesalers to help them generate motivated seller leads.
Some examples of digital marketing strategies these agencies will plan and execute for you include:
- Facebook ads
- Pay-per-click ads
- Blog posts
- SEO for real estate investors
Most marketing agencies charge wholesalers a monthly retainer fee for their services, and it may take a few months for the marketing to take off, so patience is key.
Do Your Own Marketing by Yourself
You can do it yourself if you have the time and money to build and maintain one or a few solid marketing channels.
This approach could allow you to save resources in a long term perspective.
To build a digital presence and start generating motivated seller leads yourself, first of all you will need to create a professional lead-generating real estate investor website.
Once you have your website, you will want to implement search engine optimization tactics to get it indexed and start ranking on Google and other search engines.
Then you will want to post content that drives people to your lead-generating website and/or run online ad campaigns.
Remember to be patient. It can take months of consistent content creation to develop a wholesale real estate lead generation process working on autopilot.
Some real estate wholesaling tools and pre-made website templates for real estate investors can help you accelerate it.
How to Market Florida Wholesale Deals to Investors?
Once you’ve found the best way to find motivated sellers and figured out how to locate distressed properties, you need to get in touch with reputable Florida cash buyers interested in the properties you get under contract.
There are different types of real estate investors that are interested in acquiring Florida wholesale properties, such as:
- individual real estate investors
- hedge funds — these companies have unlimited resources and often want to buy as many properties as possible
- real estate investment companies — these businesses often have strict buying criteria
To find real estate investors, you have two best ways of wholesale real estate marketing that we will discuss below.
Build Your Own Cash Buyers List
To build your cash buyers list yourself, you can utilize a few different methods:
- Attend real estate networking events and talk to investors
- Build relationships with contractors who work on flips for investors
- Call “For Rent” signs, as these owners may be looking to acquire more properties
While you can build your own cash buyer’s list with a boots-on-the-ground approach, this isn’t easy if you are virtually wholesaling.
This is where Real Estate Bees’ revolutionary invention — Property Marketplace Widget for Wholesalers — can benefit your business.
The widget allows you to build your cash buyers list on autopilot so you can focus on finding motivated sellers. There is no other tool like this one on the market.
What’s even more powerful is that this tool lets you syndicate your contracted properties directly to Real Estate Bees’ massive marketplace of wholesale deals for sale in Florida and instantly reach thousands of potential buyers!
Leverage Other People’s Cash Buyers Lists
Many seasoned real estate wholesalers in Florida already have a list of ‘we buy houses in Florida’ companies they work with regularly.
However, if you choose to use someone else’s cash buyers list, they will expect a percentage of your assignment fee, sometimes as high as 50%.
If you want to avoid giving away half of your profits while using someone else’s cash buyers list, you can use a robust property syndication tool developed by Real Estate Bees to help wholesalers with the disposition.
The tool lets wholesalers leverage Real Estate Bees’ extensive list of Florida cash home buyers to blast their contracted properties for free.
To take advantage of this cutting-edge functionality, create a free account and list your wholesale property.
What Documents Are Needed for Wholesaling Real Estate in Florida?
Contract Assignment
When first putting a property under contract with a motivated seller, you will need two contracts:
- Contract to Purchase Real Estate
- Assignment Contract
The contract to purchase real estate is a document that lays out your interest in acquiring the property.
It will include information such as the purchase price, the property’s address, the seller, and any contingencies such as an inspection period.
While you can find many Florida purchase contracts for free online, you should work with an attorney to draft your own to ensure you are protected.
Once you have a signed purchase contract, it’s wise to have both the seller and end buyer sign an assignment contract.
This contract states that you are not purchasing the property yourself but assigning the contract to an end buyer.
Having this contract signed ensures no one involved in the transaction is misled and can save you from future legal troubles.
Double Closing
You will need two purchase agreements if you are utilizing a double closing.
First, you will need a contract to purchase real estate signed by you and the seller.
Then, you will draft a separate purchase agreement signed by you and the end buyer.
This is most commonly used if you are making a hefty assignment fee and do not want your seller or end buyer to see your profit.
The first contract will disclose the purchase price between you and the seller, and the second contract will disclose the purchase price between you and the buyer.
With two separate contracts, the seller does not see how much the end buyer is paying, and the end buyer does not see how much you are paying to acquire the property.
Two contracts are needed in a double closing because two closings are involved.
Do You Need a License for Real Estate Wholesaling in Florida?
You do not need a Florida real estate license to wholesale properties.
However, wholesaling with a real estate license can add a layer of protection to your business.
If you slip up and use the wrong language when marketing, you can easily get in trouble with the Florida Real Estate Commission for providing a real estate agency service without a license.
Therefore, if you want to protect yourself, consider getting your license and joining a wholesale-friendly brokerage.
It’s important to interview Florida real estate brokerages before deciding which one to join, as some brokers do not want their real estate agents wholesaling. Do your due diligence ahead of time.
What Is the Age Requirement for Real Estate Wholesaling in Florida?
You must be 18 or older in Florida to enter into a legally binding contract.
While there is not technically an age restriction on wholesaling real estate, most buyers, sellers, and title companies will not work with someone under 18.
Do You Need an LLC for Wholesaling Real Estate in Florida?
When wholesaling real estate in Florida, it is usually a good idea to operate under a legal entity such as an LLC.
The benefits of starting an LLC in Florida include:
- Liability protection: it’s harder to sue a company rather than an individual. Creating a legal entity is one of the components in a number of real estate asset protection strategies.
- Tax benefits
- Brand and professional image
Most investors recommend closing out your first three to five deals under your name before forming a business entity.
This is because some time and money are involved in creating your business entity.
How Much Money Do You Need to Wholesale Real Estate in Florida?
Wholesaling real estate in Florida can be inexpensive, but it depends on the amount of work you want to do versus the work you want to outsource.
There are inexpensive or even free strategies for marketing to sellers and end buyers, like networking and driving for dollars.
However, you must obtain transactional funding if you choose to utilize a double closing.
Here at Real Estate Bees, we have the tools to help you compare loan rates from Florida real estate lenders around the country by using our “request financing” form.
Starting your wholesaling real estate journey can be overwhelming, so don’t forget to utilize tools like this to help you grow your business.
How Much Money Can You Make Wholesaling Real Estate in Florida?
When wholesaling real estate in Florida, the sky’s the limit. Your revenue will depend on how fast you find deals and close them. An assignment fee can be $10-15k for a $150k house.
However, it takes time and patience to build up your marketing, even find your first distressed property and build your cash buyer’s list.
Successful wholesaling businesses aren’t built overnight, so ensure you are ready to do the work.
Is the Florida Real Estate Market Good for Wholesaling?
How good a market is for wholesaling real estate in Florida depends mostly on the city or even a neighborhood where you plan to operate.
To understand overall trends within the state, study this Florida real estate investment market analysis.
What Are the Best Cities for Wholesaling Real Estate in Florida?
As a wholesaler, you serve Florida real estate investors who rely on demand from home buyers and renters. Therefore, you need a stable market with a growing population and demand for properties.
Below are 10 Florida cities with booming or growing real estate markets.
How to Learn Real Estate Wholesaling in Florida?
If you want to become a successful wholesaler in Florida, you must first invest in your education.
You can avoid costly mistakes by taking the time to learn before you jump in feet first.
There are different ways to learn how to get started in wholesaling real estate in Florida. Below are the most effective ones.
Courses
Success leaves clues. This is why following a real estate wholesaling course from a seasoned investor can be very beneficial.
However, many scammers out there want to prey on hungry new investors. Make sure the instructor is a real expert recognized by other reputable industry professionals and publications.
Lucky for you, the Real Estate Bees team has a list of the best wholesale real estate classes that will give you invaluable knowledge and be worth your money!
Books
There are tons of great real estate wholesaling books written by experts who have been wholesaling real estate for years.
Books like “If You Can’t Wholesale After This” and “The Beginner’s Guide to Wholesaling Real Estate” are great places to start.
Their authors, Todd Flemming and Jeff Leighton, have spent their entire careers learning the ins and outs of the real estate investing industry and are passionate about helping others grow.
Read our reviews of these and other best books on wholesale real estate investing to know where to start.
Investor Clubs
There are local real estate investor clubs throughout Florida where you can gain a ton of value.
These clubs are a great way to network for new business and meet seasoned investors who can impart wisdom including insight into the tactics that work in the local market trends.
In these clubs, you can also find investors to build your cash buyers list for wholesaling real estate.
The Real Estate Bees team has a list of real estate investor clubs in Florida for you to explore.
Attend as many meetings as possible (virtually or in person) and choose the clubs that provide the most value.
Real Estate Wholesaling Mentors
A smart way to save yourself trouble when doing your first deals is hiring one of the best real estate investing mentors or coaches in Florida.
An experienced wholesaler’s advice will prevent you from making typical newbie mistakes leading to losing time and money or even to legal problems.
You will have to pay your mentor for their services — either a fee or part of revenue from each deal they assist you with.
However, supervision of a coach will help you grow your business faster than if you learned everything the hard way, based on your own mistakes.
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About the Author
With over 20+ years of experience in real estate investment and renovation, Brian Robbins brings extensive knowledge and innovative solutions to the HouseCashin team. Over the years Brian has been involved in over 300 transactions of income producing properties across the US. Along with his passion for real estate, Brian brings with him a deep understanding of real estate risks and financing.