Are you someone that looks for different ways to create passive and active wealth?
Do you walk the streets of Oklahoma and wonder how you can get involved in the massive real estate boom that the state has experienced over the years?
Just last year Oklahoma’s population has grown at the fastest rate since 2015. At 0.6% year-over-year growth in 2021, Oklahoma grew three times the rate of the nation's average.
At just shy of 4,000,000 people, the Sooner State ranks 28th in terms of largest states by population. However, the state only has 1,760,000 housing units - making the ratio of housing units to population more constrained than neighboring states such as Arkansas and Texas.
This creates opportunity.
A growing population and a limited amount of housing units cause an increase in real estate pricing and turnover - and you have the opportunity to get involved by wholesaling these properties.
Wholesaling real estate is a great way to participate in the booming Oklahoma real estate market and housing shortage without putting too much money down. It allows you to expand your network, make investments, and generate substantial wealth along the way.
In this article, we’ll explain how to wholesale real estate in Oklahoma.
Wholesaling real estate is the act of connecting homeowners – typically ones looking for a quick close – with fix and flip investors.
A wholesaler will typically cold call owners, send postcards, reach out to real estate agents and realty shops, and go under contract with a seller. Once under contract, the wholesaler will flip the purchase agreement over to an end-buyer who will subsequently fix and flip the property for a profit.
In exchange for this buyer-seller connection, the wholesaler receives an assignment fee.
Now that we covered what wholesaling is, here’s our process for wholesaling in Oklahoma. Also, check out our in-depth video on how to wholesale step by step in 21 days or less!
Here's our simple step by step process for wholesaling real estate in Oklahoma:
As a wholesale investor, you’ll want to reach out and learn from a wholesale mentor.
Wholesaling is a game of volume. Success will entirely depend on how many calls you can make, how many investors you can add to your cash buyer list, how many networking events you can attend, and how many blog posts, courses, and forums you can curate.
A mentor can help you hit the ground running and close more real estate deals.
Mentors have already “been there and done that.” They can provide you with the necessary tools to shape your journey into a winning one.
Befriend a mentor and pick their brain constantly. Ask them about every opportunity that crosses your desk. Ask them for financing resources, such as lenders, and legal advice.
Once you’ve secured a mentor, you’ll want to learn wholesaling laws and contracts.
As a wholesaler, your number one priority of yours should be protecting your own interest. You will be interacting with many different people with different motives. Every step of the way you’ll want to ensure your purchase contract is rock solid, your assignment contract is rock solid, and that all parties – whether it be you, the seller, or the end-buyer – are all transparent throughout the process.
One way to ensure your interests are aligned is by familiarizing yourself with wholesaling laws, state laws, licensing laws, and the requisite contracts needed to secure a transaction.
First and foremost, browse the ARELLO website to get acquainted with real estate license law. ARELLO – or the Association of Real Estate License Law Officials – is an international organization that advocates for the administration and enforcement of real estate license law.
The organization provides tremendously valuable insights into licensing laws across the country and the world.
Next, you’ll want to gloss through the Oklahoma State Courts Network Title 60 – the section discussing property laws.
Over there you’ll find details regarding real property definitions, insurance policies, contracts, and much more.
Lastly, you’ll want to understand the details around the Predatory Real Estate Wholesaler Prohibition Act.
This wholesale act limits what a wholesaler can and cannot do in Oklahoma. It was passed about two years ago and took effect November 1st, 2021.
We’ll dive deeper into the act and its limitations later in this article, but for now know that it is an extremely important point that changed the Oklahoma wholesale landscape quite considerably.
When diving into any new market, you’ll want to assess the market strengths, weaknesses, and opportunities.
Oklahoma has ten major cities with varying degrees of popularity and opportunity. The top three cities by population are Oklahoma City with 680,000 residents, Tulsa with 400,000 residents, and Norman with 125,000 residents. Those cities are likely the best place to start your research.
Walk around the streets of those towns and determine where most people are eating, living, and going to school. For instance, maybe check out the University of Oklahoma and its surrounding towns. It is the biggest college in the state and could cause the surrounding neighborhood houses to appreciate in value if the university continues to grow.
You could also make a list of all the large high schools in the area. Families will typically gravitate towards neighborhoods with good school districts. Those houses can also be a great place to start your wholesale journey.
Next, you’ll want to browse local real estate websites to learn about the ins and outs of the market. Check out the Oklahoma Real Estate Commission (OREC) and Oklahoma Association of Realtors websites for resources to build your market data. Additionally, you might want to familiarize yourself with the Oklahoma Abstractors Board. They provide laws regarding title insurance and certain conveyances you might come across in a real estate transaction.
Most individual cities also have city-specific realtor resources that might be helpful to gloss through. See the below list for a handful of examples:
After you’ve done your market research, you’ll want to build a cash buyer list.
A cash buyer list is a list consisting of numerous real estate investors who are eager to invest in the Oklahoma housing market through your wholesale deals.
These people are ready to purchase investment properties with cash and they are ready to close very quickly. Compiling a large list of cash buyers will help you execute on wholesale transactions with ease.
Once you’ve compiled a list, you’ll be able to source properties on their behalf utilizing their specific investment criteria.
The beauty of a cash buyer is that they typically are not reliant on bank or hard money financing. They have plenty of liquidity and are just as eager to buy properties as you are eager to sell them.
Send out postcards, comment on blogs, and attend networking events. Having a strong cash buyer list could set you up for tremendous success.
You can also check out this quick video below that talks about how to find cash buyers online for free!
Next, you’ll want to find motivated sellers and distressed properties.
Motivated sellers are homeowners who need to close on their houses quickly. These people are typically in a cash crunch and would rather have cash rather than a property.
As a wholesaler, you’ll want to stick to motivated sellers – whether from the MLS or off-market properties.
Distressed properties are also another hunting ground for opportunity.
These properties typically consist of foreclosures being auctioned by banks or third-party auction houses. They could be houses that need a tremendous amount of renovation or houses with a non-compliant borrower.
If you can land an auctioned, distressed home, you might be able to secure a tremendously undervalued property.
Check out the Oklahoma County Sheriff’s Foreclosure Sale for a list of properties up for bid.
Read Also: 25 Questions To Ask Motivated Sellers: Investor’s (ULTIMATE) Guide
After you’ve done your research and have found the right distressed property, you are ready to go under contract.
One piece of advice before entering this phase of the process – get legal advice. A local real estate attorney or real estate licensee will be able to assist you in writing up a strong purchase and sale agreement.
Here is the most recently approved sample Oklahoma Uniform Contract of Sale of Real Estate form.
However, before you go under contract, you’ll want to crunch the numbers. This is known as the Maximum Allowable Offer – or the MAO formula.
This is what the formula looks like:
MAO = After Repair Value – Rehab Costs – Desired Profit - Wholesale Fee
Let’s take it to step by step.
The ARV or After Repair Value is the value of the property when it is brought back to the market. To calculate this value, you’ll want to survey surrounding streets and neighborhoods to determine what other houses are selling for. If you are buying a two-bedroom, one-bathroom range, but you are converting it into a three-bedroom, two-bathroom home, you’ll want to research what other three-bedroom, two-bathroom houses sell for.
You can do this by searching Zillow, the MLS, or Redfin. A simple internet search and a phone call to a local Oklahoma realtor can give you the estimated after-repair cost of your property. You can also reach out to local Oklahomans and licensed real estate appraisers – they can show you old appraisals to get an idea of value trends over time.
Rehab costs are the estimated costs associated with renovating the property. This could include anything from painting, landscaping, new appliances, and plumbing.
Estimate how much the repair job will take, because your buyer will need to do some work to the property if they ever plan on raising its value and reselling it. Consult with a general contractor or experienced rehabber to understand the costs of rehabbing a property.
This number is a little trickier to calculate because it is entirely up to you.
Your end buyer is going to want to make a profit if they buy, fix, and flip your house. How much are they going to want to make? Your guess is as good as mine. But, what you can do is bake in a range of possibilities.
Real estate investors like to make anywhere between 10% profit on the low end and 50% profit on the high end. So, if you are selling a house with a $150,000 ARV, you’ll want to bank in at least a $20,000 - $30,000 profit when all is said and done.
The last variable in the equation is your profit – the wholesale fee.
This number is also entirely up to you. If you want to make $10,000, put that number in. If you want to make $20,000, you can put that number in too.
Consider basing your wholesale fee on the market conditions, the amount of work you’ll need to put in, the projected profit for your cash buyer, and the price of the house.
Anywhere between $10,000 - $20,000 will typically seem reasonable.
Once you’ve calculated your MAO, you are ready to make an offer! Buy the property for anything less than the MAO and you’ll secure a profit.
Once you’ve gone under contract and contacted a cash buyer, it’s time to assign him or her the assignment of contract.
Remember, to consult an attorney before you draft your assignment contract. The number one most important rule is to ensure your interests are protected.
Download Free Wholesale Real Estate Contracts Here (PDF)
Once the assignment contract is signed and the purchase agreement is transferred over to them, you get to collect your assignment fee.
This can be in the form of cash or check or whatever mode you prefer. Just make sure you and the end-buyer are always on the same page.
To maximize flexibility, sometimes you might want to double close or wholetail when necessary.
A double closing is when you go under contract with the cash buyer and the seller around the same time and forgo the need for an assignment contract. You’ll be using two separate purchase agreements.
What you’ll do is take the contract you have with the cash buyer and then present it to the title company alongside your contract with the initial seller. Then, the title company will facilitate your closing with the end-buyer and use the funds in escrow to fund the purchase of the property from your seller.
Not all title companies will allow this, so you can utilize a private money lender or transactional funding to close the deal with the seller.
In terms of flexible closings, you can also take the wholetailing route instead.
Wholetailing is the act of taking ownership of the property, doing some high return on investment (ROI) renovations to drive value up, and then re-listing the property shortly thereafter on the MLS. Wholetailing is in essence a hybrid between wholesaling and a full flip. It can be a great strategy if you don’t have a good cash buyer yet or you are hoping for more favorable market conditions in a few weeks by selling to a savvy homeowner looking for a fixer rather than an investor.
Read Also: Wholesaling Real Estate For Beginners
Yes! Wholesaling is legal in Oklahoma. Though, not without its limitations.
As mentioned earlier, the Predatory Real Estate Wholesaler Prohibition Act is a new law that changed the game for wholesalers. Lawmakers noticed that wholesalers were engaging in predatory practices when marketing and flipping homes. They were, for the most part, using the strong real estate market to take advantage of homeowners and corner prices, go under contract with vulnerable sellers, and market the contract publicly to interested investors.
To curb this practice, lawmakers decided to require all wholesalers who engage in the practice of buying and selling contracts to get licensed under Oklahoma Real Estate License Code if they want to market the contract publicly. By doing so, they would ensure wholesalers are abiding by the standard real estate code rather than lawlessly operating their businesses without any oversight.
Now, after the law has passed, wholesalers either must get licensed or market their contracts privately amongst a pre-set cash buyer list. The days of taking advantage of a strong real estate market and flipping contracts over to end-buyers in a public forum without a license might be over, but that doesn’t make real estate wholesaling illegal by any stretch.
The wholesaling law states that “nothing in this section shall…prevent any person… from acquiring real estate for its own use, nor shall anything in this section prevent any person… from selling, renting, leasing, exchanging, or offering to sell, rent, lease, or exchange, any real estate so owned or lease.”
This means that wholesaling real estate is still completely legal if the business or individual is not “publicly market[ing] for sale an equitable interest in a contract for the purchase of real property between a property owner and a prospective purchaser.”
If you go the licensing route, here is a list of approved courses you can take to springboard your Provisional Sales Associate licensing.
Unfortunately, there is no perfect answer to the wholesaler salary question.
Truthfully, the salary depends on the size of the deal and the volume. If you are wholesaling large real estate investments and multi-family buildings, you’ll likely make a pretty penny. But, if you sell one deal every three months, you likely won’t make enough to live on.
On average though, you should make anywhere between $10,000 - $25,000 per transaction.
As mentioned earlier, with the passing of the Predatory Real Estate Wholesale Prohibition Act, the government made it more attractive to get a real estate license.
With a license, you’ll be able to broker deals, market properties, and contracts publicly, and get access to a large network of buyers and sellers.
So, although you might not necessarily need a license to be a successful wholesaler, it might be a good idea to get one anyway.
No, wholesaling in Oklahoma – and in any state – is not easy.
As you’ve learned, there are several laws, regulations, and tricks you’ll need to learn before you dive into the wholesale market. But, with the right coach, mentor, and training you can learn to navigate the industry with ease.
Check out the Real Estate Skills Pro Wholesaler VIP Program. It’s a great place to start your journey.
The Pro Wholesaler VIP Program is designed for the modern entrepreneur to learn the basics and the easy potholes to spot and avoid. It is 100% online and is used for local and virtual real estate wholesaling.
The great state of Oklahoma is a fantastic place to begin – or expand – your real estate journey. And, wholesaling real estate throughout the various Oklahoma cities can be your ticket to financial freedom.
Familiarize yourself with Oklahoma law, engage with real estate professionals, navigate the ins and outs of off-market and MLS properties, and walk the streets of major towns like Norman, OKC, and Tulsa.
Also 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.
Then, when you feel ready, write up a real estate contract and take the plunge and wholesale properties! It won’t be easy at first, but once you have a few of your deals under your belt, you’ll be wholesaling with ease.
Best of luck!
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