At present, Michigan’s real estate market is replete with profitable opportunities for wholesalers.
How much can you make wholesaling real estate? Beginners can generate upwards of $47,000 annually, whereas experienced professionals can take home $74,000 or more each year.
And with home prices rising and a strong job market expected in 2025, wholesaling in the wolverine state could be quite a lucrative strategy.
But how is one to get started in the fabulous world of wholesaling? Of course, a few key steps must be taken. For example, you should go through our guide, as we discuss important legal aspects and licensing requirements wholesalers must know.
Is Wholesaling Real Estate Legal In Michigan?
Yes, wholesaling is legal in Michigan, but you must follow relevant state laws. For one, to be in compliance with the Michigan Occupational Code Act 299 of 1980, you need to be licensed, otherwise you can’t execute most kinds of real estate transactions.
But in certain instances, wholesalers are allowed to operate without a license, like when they’re assigning contracts.
But if you market the property or engage in other practices that require a license, and you don’t have one, you may end up in legal hot water.
Plus, if you’re an unlicensed wholesaler in Michigan, you can only do five wholesale deals in a year. If you want to do more than that, you’ll need a license.
Steps For Wholesaling Real Estate In Michigan
1. Learn The Market & Legal Requirements
Before you jump in, learn about Michigan’s real estate market. Attend seminars, network with experienced investors, and consult with real estate attorneys to get a good idea of what to expect.
2. Build A Strong Buyer’s List
Having a diverse list of buyers is essential. Here’s how you can build a solid list:
- Send cold emails.
- Attend real estate networking events.
- Join online investor forums.
- Connect with property management companies.
3. Find Motivated Sellers
Look for homeowners who are willing to sell below market value. Distressed property owners are almost always trying to sell quickly.
4. Evaluate The Property & Make An Offer
Determine the property’s fair market value (FMV) by running comps. Factor in your assignment fee, closing costs, and the buyer’s profit before making an offer. Always disclose to sellers that you’re a wholesaler.
5. Draft A Purchase Agreement
A well-structured contract should include:
- The asking price
- Closing timeline
- Assignment clause
- Inspection contingency (allows you to exit the deal if needed)
This contract gives you the right to assign the property to another buyer for a profit.
6. Assign The Contract To A Buyer
Once you find a buyer, assign them the contract and transfer your purchasing rights. Your assignment fee is the difference between the price you negotiated with the seller and the price the buyer agrees to pay.
7. Close The Deal
You finalize the contract, at which point ownership of the property is transferred to the buyer. Some buyers will renovate their properties, while others resell to interested investors or traditional buyers.
Ways To Close A Wholesale Deal
The two main ways for closing a wholesale real estate transaction are:
- Assigning A Contract – You find a buyer and transfer the contract to them. You collect your assignment fee after the deal closes.
- Double Closing – You briefly take ownership of the property before reselling it to an investor. You may need transactional funding in Michigan to double close, but the upside is there’s more potential for sizable profit.
Transactional Funding For Wholesalers In Michigan
If you need fast funding to double close in Michigan, choose DoubleClose.com. Whether you need a large or small loan, you can get it from us—the transactional funding experts who are trusted throughout the nation!
Get in touch with us to close your next deal seamlessly!
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