How To Wholesale Real Estate In Indiana: Step By Step (2024)

Do you live or want to invest in the Indiana real estate market? Do you wholesale rental properties or flip houses in a different state and want to dip your toes into a new and exciting investment property-friendly market?

Do you search websites and blogs about wholesaling business, real estate deals, or generating passive cash flow in Indy, but don’t know how to get started?

If the answer to any of those questions is a “yes!”- then you’ve come to the right place.

Indiana has just under 7,000,000 people residing within its borders. And, those 7,000,000 people live in just shy of 2,950,000 homes. 

The historical trend for both those figures has moved up considerably over the years - with one major caveat; the population is increasing faster than the number of homes on the market.

So, what does that mean for you? It means that the market is ripe for disruption.

It means that the demand for real estate and its value appreciation is likely to persist for quite some time in the future. This means, that there is no better time to invest and wholesale real estate in the Indiana market.

All you have to do is learn a proven investment model and seize the opportunity. Read ahead to learn how to wholesale real estate in Indiana. 

• What Is Wholesaling Real Estate?
• How To Wholesale Real Estate In Indiana (9 Steps)
• Is Wholesaling Real Estate Legal In Indiana?
• How Much Do Real Estate Wholesalers Make In Indiana?
• Do You Need A License To Wholesale Real Estate In Indiana?
• Is Wholesaling In Indiana Easy?
• Final Thoughts On Wholesaling In Indiana

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*Before we begin our guide on wholesaling real estate in Indiana, we invite you to view our video on How To Wholesale Real Estate Step by Step (IN 21 DAYS OR LESS)!

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What Is Wholesaling Real Estate?

Wholesaling real estate is the act of connecting home buyers and a seller in a specific real estate transaction. Typically the wholesaler will go under contract with a distressed seller and simultaneously find a cash buyer for the property. Then, the wholesaler will assign the purchase contract directly to the seller in exchange for a fee.

Savvy wholesalers focus on acquiring the rights to properties that have immediate upside through forced appreciation. This means that the investor who buys and invests in the real estate can increase the property value through renovations, solving problems, increasing rents, and a variety of other methods to build the investor's equity position in the property. 

Since real estate investors are always looking for properties to add to their portfolio - either to fix and flip or rent out to tenants - wholesalers play an important part in contributing to investors' deal flow. That's why wholesalers are able to make money consistently. The demand for great real estate deals is insatiable.

 

How To Wholesale Real Estate In Indiana (9 Steps)

Here's our simple step-by-step process for wholesaling real estate in Indiana:

1. Partner With A Wholesale Mentor
2. Learn Indiana Real Estate Wholesaling Laws & Contracts
3. Understand The Indiana Real Estate Market & Lingo
4. Build A Cash Buyers List
5. Find Motivated Sellers & Distressed Properties
6. Put Distressed Properties Under Contract
7. Assign The Contract To Cash Buyer
8. Close Deal And Collect Assignment Fee
9. Double Close When Necessary

1. Partner With A Wholesale Mentor

The first thing any wholesaler needs to do within a new market is to find and partner with a wholesale mentor.

Wholesale mentors can help an aspiring beginner wholesaler navigate the ins and outs of a market. Certain challenges such as laws and regulations, navigating the MLS and realtor network, connecting with the appropriate buyers and sellers, recommending legal assistance, and an appropriate exit strategy can all be alleviated by a wholesale mentor.

These mentors have experience and will help guide you through the necessary steps to become successful at wholesaling in the Indiana market.

2. Learn Indiana Real Estate Wholesaling Laws & Contracts

Once you have a wholesale mentor, it is time to learn the Indiana real estate wholesaling laws and contracts.

If you don’t have a good grasp of the region’s practices, you’ll potentially put yourself in a sticky situation. The last thing any wholesaler wants is to be either liable for breaking the law or liable for any damages caused during the transaction and real estate contract assignment.

According to Article 34.1 of the 2021 Indiana Code, a broker is anyone who:

(A) for consideration, sells, buys, trades, exchanges, options, leases, rents, manages, lists, or appraises real estate or negotiates or offers to perform any of those acts; and

(B) is acting in association with and under the auspices of a managing broker and broker company.

Brokers require licenses, wholesalers do not.

So, how is wholesaling legal if wholesalers are essentially connecting buyers and sellers?

For a few reasons:

1. The wholesaler is not selling the property, but rather the equitable interest in the property.
2. The wholesaler is not marketing and advertising the property in the same capacity as a real estate agent does.

If you’d like to wholesale real estate in Indiana, you must not violate the above two points.

Familiarize yourself with Indiana requirements for a broker’s license and be sure not to violate any of these rules.

Aside from a real estate mentor, it might be best to reach out to legal counsel for your first few transactions to ensure you make all the right moves. A lawyer will put all these issues at bay and can provide you with the right disclosure forms, purchase agreements, and wholesale assignment contracts.

3. Understand The Indiana Real Estate Market & Lingo

Next, it is time to understand the Indiana real estate language and the broader market.

When you approach sellers and potential buyers, you’ll want to know the terminology, trends, and local attractions of the Indiana market.

What kind of houses do families prefer?

Which locations are most likely to appreciate over the coming years?

Which neighborhoods have good schools and restaurants?

These questions and many more should be a part of your standard real estate market survey and research. 

Understand housing trends in Indiana and be prepared to ask the right questions when presented with an opportunity.

 

4. Build A Cash Buyers List

As a non-licensed wholesaler, you will be prohibited from listing your property on major brokerage sites. Of course, you can always get a license to make such a listing eligible with the proper agreements in place with the seller. Whether or not you elect to remain unlicensed, you’ll want what's called a cash buyer list at your disposal. 

A cash buyer is a buyer with liquid assets ready and able to make a transaction. Typically, these buyers are well-capitalized investors and investment companies looking to purchase off-market deals at attractive multiples with high Return on Investment (ROI) capabilities.

These buyers are great for wholesaling houses to.

They are ready to transact and can close within a handful of days of being contacted.

As a wholesaler, given that you won’t be able to publicly advertise the property, you’ll want a list of contacts to reach out to as soon as you’ve found an attractive deal.

Accessing your mentor’s network, surfing blogs and online forums, and going to real estate conferences can all be a great way to build your cash buyers list.

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You can also check out this quick video below that talks about how to find cash buyers online for free!

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5. Find Motivated Sellers & Distressed Properties

After you’ve identified a strong market, learned the key phrases and legal loopholes and requirements associated with the Indiana market, and conducted the networking necessary to build a cash buyers list, you’ll then want to locate motivated sellers and distressed properties.

As a wholesaler, in order to successfully connect able buyers with willing sellers, you’ll want to spend most of your time in the distressed property realm.

Why? Because you’ll need an attractive enough entry point on the initial purchase contract to factor in your wholesale assignment fee when you flip the purchase agreement over to the new buyer.

Every buyer wants a good deal. If you find a house that is selling for $250,000 but is not undervalued in any way, a buyer will not be interested in purchasing your contract with the additional assignment fee attached.

You’ll want to find a house selling for $150,000 in a neighborhood with similar houses of make and build selling for $250,000.

By finding a distressed property, you’ll be able to tag along your wholesale fee without deterring a potential cash buyer.

Dive into real estate wholesaling with confidence. Download our FREE Wholesaling Cold Calling Script! 

6. Put Distressed Properties Under Contract

You’ve done the necessary market due diligence and have identified the right property and the right cash buyer - now what?.

It’s time to calculate the Maximum Allowable Offer (MAO), make an offer on the property, and get ready to flip the contract over to a new buyer.

What are the steps?

Step 1: Calculate the ARV or the After Repair Value.

Step 2: Estimate the rehab costs needed to bring the property back from of a state of distress

Step 3: Calculate your offer price. Consider using the Maximum Allowable Offer formula - or the MAO formula

Checking out the surrounding market to determine what houses are typically selling for. You can do this by either reaching out to your local bank, or real estate broker, or surfing Zillow.com and Loopnet.com.

Here is a list of local state-wide realtor websites and organizations:

1. Greater Northwest Indiana Association of Realtors (GNIAR)
2. Lafayette Regional Association of Realtors (LRAOR)
3. Mibor Realtor Association (MIBOR)
4. Mid-Eastern Indiana Association of Realtors (MEIAR)

You can also check out the Indiana Association of Realtors (IAR) - one of the largest associations of real estate professionals throughout the state. There you will be able to find contacts of knowledgeable individuals and important resources to help you make an educated decision.

Next, determine the repair costs by speaking to local general contractors and handyman services. These professionals are looking for business, they would surely be happy to assist you and provide quotes for the repair services you would like to perform on the distressed property.

Lastly, determine the MAO by plugging each figure into the below formula:

MAO = After Repair Value (ARV) – Renovation Costs – Desired Profit – Wholesale Fee

If the distressed property purchase price falls at - or below - your MAO minus any closing costs, make an offer, and don’t look back!

7. Assign The Contract To Cash Buyer

Next, you’ll want to assign the contract over to a cash buyer. A typical assignment contract will include protection clauses and of course your wholesale fee.

As mentioned earlier, discuss the wholesale contract with a certified lawyer or wholesale mentor. Once you’ve closed on a transaction or two, you can use the same contract for each of your subsequent wholesale transactions.

8. Close Deal And Collect Assignment Fee

So, you’ve got the distressed property under contract, you’ve contacted a cash buyer ready to make an investment, and you have the assignment contract looked over and signed by all parties.

What’s next? Closing.

A typical closing shouldn’t take longer than a few hours - especially with all the requisite pieces in order.

Be sure to keep in touch with the title company, real estate agents (if applicable), lawyers, and buyer and seller. You’ll want to be ready to act in the event you are needed for any reason.

The buyer will fund the deal, including your assignment fee and the cash needed to close the purchase. The seller will relinquish the property and ideally walk away with a large sum of money. You’ll collect your wholesale fee and your buyer acquires a great piece of real estate. It’s a win-win-win!

Once you close and cash your check, it is time to move on to the next great wholesale opportunity!

9. Double Close When Necessary

If you want to be creative and broaden your wholesaling skills, you might want to consider a double closing.

Double closing is a type of real estate investment strategy where two real estate transactions take place simultaneously. Like traditional wholesaling, this strategy includes a property seller, a wholesaler, and an end-buyer.

So, what’s the difference between standard wholesaling practices and a double closing?

It all lies in the method of closing. Here’s how it works:

First, purchase a distressed, on or off-market property. It can be residential, multifamily, mixed-use, retail, office, or an AirBnB. It doesn’t matter the type of property, just that it is below fair market value. Then, you quickly sell the property to the end buyer. In a cash transaction, there aren't many hoops you’ll jump through. You’ll work on your own schedule and be able to cross-fund with cash pretty easily. The challenge becomes financing.

When structured favorably, the funding is set up so that the cash proceeds from the sale of the property to the end buyer can directly fund your purchase of the property from the original seller.

The transaction is essentially happening in reverse order. Instead of you, the original buyer, buying the property from the seller first, you instead sell the property to the end buyer and then use the proceeds to fund the seller.

By doing it this way, you send the money over to the seller minus your wholesale fee. By doing this transaction, no one actually knows the wholesale fee you’ve baked into the transaction. This strategy is less common, however, due to the challenging reverse nature of the transaction.

You’ll have to get the title company to cooperate when using the end buyer's funds to close the first transaction with the seller. They need to be able to hold the money in escrow and facilitate the transactions to make all parties happy.

Sometimes, double closing specialists will use private money funding or hard money lenders to alleviate some of the red tape associated with using traditional bank financing.

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*For in-depth training on wholesaling real estate in Indiana, Real Estate Skills offers extensive courses to get you ready to make your first investment! Attend our FREE training and gain insider knowledge, expert strategies, and essential skills to make the most of every real estate opportunity that comes your way!

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Is Wholesaling Real Estate Legal In Indiana?

Absolutely! Like many other states, wholesaling real estate is legal in Indiana.

Wholesaling is the act of connecting buyers and sellers via a purchase assignment contract. Although there are certain limitations associated with wholesaling if you play the role of a broker, to simply sell the contract associated - or collateralized - by a specific property is completely legal and within the realm of possibility.

However, it might be beneficial to get your real estate license anyway. Being a broker will give you access to the MLS site, a vast network of professionals within the industry, marketing material such as wholesaling postcards and pamphlets, and commission on a sale if you decide to broker your wholesale deal.

It’s a win - win - win if done right.

 

How Much Do Real Estate Wholesalers Make In Indiana?

There are no bounds to how much a real estate wholesaler can make in Indiana. A typical wholesale salary can range from $5,000 - $25,000+ per transaction.

Due to the lack of homes in the area, housing prices have been on a tear since the start of the pandemic. Although there has been some recent volatility in interest rates, there still is an abundant amount of individuals that need homes.

Housing is going up and to the left - there is no doubt.

What that means is wholesale fees have a lot of room to grow. As transaction sizes get bigger, the wholesale fees will get larger.

It is very possible to make over $100,000 a year wholesaling 1-2 contracts a month.

Obviously, when you start out you’ll likely only bake in a small percentage gain, however when you get more confident in the Indiana market and your abilities, you’ll soon be able to charge much more for your work.

 

Do You Need A License To Wholesale Real Estate In Indiana?

No wholesale license is necessary to wholesale real estate in Indiana. But, it might be a good idea.

The licensing exam is not too challenging. A few weeks of studying could mean far more opportunity and access to better deals down the road. Besides, although it’s not necessary, it definitely can’t hurt to have a license.

If you are interested, here is the license application and some of the requirements you’ll need to get the ball rolling.

 

Is Wholesaling In Indiana Easy?

No, but it can be much easier with the right tools. As mentioned, a mentor can make or break your success in a new market.

A strong cash buyer’s list can also make a huge difference.

Reach out to local professionals. You may be surprised as to how many would be willing to take you in under their wing and pass on the wholesaling secrets to the next generation of wholesalers.

Check out the Real Estate Skills Pro Wholesaler VIP Program as well. It offers many tools and resources to springboard your wholesale career.

You can get quality guidance and training available and easily accessible online. Built and designed for the modern entrepreneur, it is 100% online and is used for local and virtual real estate wholesaling.

Read Also: 8 Best Real Estate Wholesaling Tools

 

Final Thoughts On Wholesaling In Indiana

Indiana is a fantastic real estate market with good macro trends in your favor. Wholesaling isn’t always easy, but with the right tools, you can become wildly successful in the Indiana market.

Take some time to research the area and speak to agents and sellers. It might be scary at first, but once you lock in your first transaction, you’ll become an expert in no time.

Check out our brand new free training on how we help investors all across the country wholesale and flip houses from the MLS using only a laptop and a cell phone. See you there!