Did you know starting a lawn care business could make you over $100K in your first year? Mike Andes started Augusta Lawn Care when he was just a teenager, and today he has grown it into one of the top franchising companies in the U.S. In fact, his lawn care business model is so successful that the average Augusta Lawn Care business makes over $37K per month. We'll share marketing and business strategies that will help you build a successful lawn service company. [su_note note_color="#dbeafc"] Click on any of the links below to learn about starting a lawn care company, or just read on.

• Step 1. What to Know Before Starting a Lawn Mowing Business
• Step 2. What Type Of Lawn Care Business Is Right For You?
• Step 3. Write a Lawn Care Business Plan
• Step 4. Consider Lawn Care Names
• Step 5. How To Start A Lawn Care Business Legally
• Step 6. Set Up Your Lawn Care Business Finances
• Step 7. Establish Safety Protocols For Lawn Care Services
• Step 8. Get Equipment and Software
• Step 9. Develop a Sales and Marketing Strategy
• Step 10. Hire Employees
• Step 11. A Successful Lawn Care Business Documents Processes

[/su_note] Get ready to learn how to start your own lawn care business.

Step 1. What to Know Before Starting a Lawn Mowing Business

It’s helpful to understand the lawn care industry before entering it. Get ready to learn about lawn mowing.

Learn About The Lawn Care Industry

According to IBIS World, lawn care is part of landscaping under NAIC code 56173. The industry makes over $176.5 billion in revenue and $15.4 billion in profit, or an 8.7% profit margin. In addition there are more than 648,000 businesses with more than one million combined employees. 

Is There Money In Lawn Care Business?

Yes. According to Augusta Lawn Care, 93% of their franchises make over $10K in the first 60 days. The average landscaping company also makes nearly $273,000 in revenue per year (but you’ll need some employees to make that much because revenue per employee tends to be around $130K).  When calculating your lawn care business income potential in your business plan (which we’ll cover in detail in a moment), keep the assumptions under $130K per employee. Lenders will question how your lawn care operations make more than that. Be prepared to explain how you expect to make more than the typical business owner when you start a landscaping business.

How Much Do Lawn Mowers Make?

The median wage for a lawn care professional is around $16.55/ hour, or $34.5K per year, according to the Bureau of Labor Statistics. In addition, business owners typically make an additional $11,310 in profit per employee, based on an 8.7% profit.  Mike told us there are really 3 revenue thresholds that are hard to cross: [su_quote]I don’t care how hard you work. You can’t make more than about $500K by yourself.[/su_quote] Check out our interview with him below. [su_youtube url="https://www.youtube.com/watch?v=MTnmagGo32Q"] The other two levels are $250K and $1M in revenue. Find out more about how to exceed those levels later in the article.

How Much Does It Cost To Start A Lawn Care Business?

You can start a lawn mowing business for less than $1,000. Mike told us: [su_quote]When we started, we started with $1,000 to buy a blower, a weed eater, and a lawn mower.[/su_quote] We also asked him about starting a lawn care business with no money. He had great advice: [su_quote]If I had zero dollars, I would walk down the street and I would look for the people who need work done that doesn’t need tools. Picking up leaves, picking up debris, and other stuff that we can [do to] make the thousand [to buy] the tools.[/su_quote]

Skills For A Lawn Care Business 

Starting a lawn care business doesn’t require a lot of skills. You need to understand how to use lawn care equipment like a lawn mower, edger, and weedwacker—but all of these products are fairly easy to use. The most important skills are understanding safety. [su_note note_color="#dbeafc"] IMPORTANT: If you want an in-depth tutorial on how to start a lawn care business, check out Mike’s course. He’ll walk you through setting up everything you need for a new business, including the automations and marketing to get more customers and save money.  In this video, Mike compares his course with buying an Augusta Lawn Care franchise. Watch the overview and learn which is right for you![/su_note]

Lawn Care Education

Most lawn care businesses don’t require education, but if you’re starting a lawn care design business or offering arborist services, you’ll want to be educated on more than just offering landscaping services like lawn mowing, weed pulling, and tree trimming. You can learn more about plants by studying the native species in your area on sites like:

• Landscape Management
• AmericanHort
• Lawn & Landscape
• National Association of Landscape Professionals

Not-So-Technical Skills

The key to Mike’s success is how he measures success. He told us: [su_quote]I went to Africa for 6 weeks when I was younger and saw how happy they were. That taught me to measure success by how happy I am and how happy the people around me are.[/su_quote] He adds value to his lawn care services by:

• Being personable
• Learning customers’ names
• Sharing lawn care tricks with customers

Just showing up and providing quality services is enough to get you further than most lawn care businesses. Mike told us: [su_quote]Customers prefer over-communication rather than under-communication.[/su_quote] Does starting a lawn care business sound like something you want to get into? Then keep reading because there are all types of lawn care companies.

Step 2. What Type Of Lawn Care Business Is Right For You?

Lawn care business owners have different options of what services they provide. You might want to consider some of these services as your core business:

1. Landscape care and maintenance
2. Lawn mowing
3. Tree trimming
4. Weed pulling
5. Arborist services
6. Fertilizing lawns
7. Landscape installation
8. Planting trees and shrubs
9. Spraying lawns
10. Landscape design
11. Turf installation

Invoice Owl has a great blog about these lawn care services and more.

Step 3. Write a Lawn Care Business Plan

You can start a lawn care business from home and make great money, but a lawn care business plan is your roadmap to long-term success. Business plan sections are pretty standard. Make sure to include:

• Lawn care insurance
• Competitive analysis of lawn care companies in your area
• Lawn care equipment
• Financial projections
• Your serviceable location
• Lawn care business licenses and permits
• Marketing plan
• Strategies to make money

And the best part is that UpFlip’s guide steers you through writing a business plan, including a free template to download. It’s worth your time to check it out. We even discussed business plans with Mike. [su_youtube url="https://www.youtube.com/watch?v=Seac5PbUZXk"] Writing the business plan, you’ll do lots of research on how to start lawn care business operations.

Perform Market Research

You can’t talk about how to start a lawn mowing business idea without talking about identifying ideal customers and creating a customer persona.  Mike made it really easy for people to know the target market when you start lawn care business operations. It’s really simple. You need to target: [su_note note_color="#dbeafc"]

• Homeowners and commercial clients (Mike sticks to residential.)
• People who make over $100,000 per year
• People who live within a 5 mile radius

[/su_note] You can use the census.gov website to narrow down what areas can afford your standard and specialized services.

Step 4. Consider Lawn Care Names

Choosing a business name is an exciting part of starting a lawn care business. Enjoy being creative, but consider the following points:

• Include  “lawn care”: You want people to know what you do. Augusta Lawn Care has it right in the name.
• Easy and clear: Potential customers may be put off by a name they struggle to spell or pronounce. Keep it simple.
• Location: Consider including your location to attract customers in your area and establish yourself within the local region.
• Branding: Mike explained how important branding is to a business name. “Augusta” is named after the golf tournament because he wants to allude to the high quality greens where the tournament occurs. He warned about being too particular about that because he used white uniforms like the golf caddies, and that was a big mistake. Check out our interview about branding below.

[su_youtube url="https://www.youtube.com/watch?v=C8MyjkibCxk"]

Make Sure The Business Name Is Available

Run your name through our business name generator, then click on the name to buy it directly from NameCheap. While you’re doing that, check out our guide on creating a website.

Step 5. How To Start A Lawn Care Business Legally

Lawn care services will need to comply with local, state, and federal laws. You’ll need the following:

• Limited Liability Company (or Other Business Structure)
• Business License
• Business Bank Account
• Business Insurance

Keep reading to find out more.

Business Structure 

There are several types of business structures you may want to use. You can file for most of them on the Secretary of State website for your state.

1. S-Corporation: Best for high-earning companies that want to lower business owner taxes. Limited number of stockholders, provides personal liability protection, requires business owners to receive salary (and optional dividends), no double taxation.
2. C-Corporation: Best for companies trying to change the world. Unlimited stockholders, provides personal liability protection, high compliance costs, and double taxation. Business owners can earn money through multiple income streams with different tax codes.
3. Limited Liability Company (LLC): Best for companies that want to separate business entities from personal assets. A Limited Liability Company provides limited liability, pass-through income, and no double taxation.
4. Sole Proprietorship: Best to just get started. Doesn’t provide liability protection or create a separate business entity, and is considered personal income. Don’t use a sole proprietorship if you hire employees.

To learn more about business formats, check out our blog on 11 business structures. 

Get a Lawn Care Business License

You’ll also want to get your business licensed. Some states let you do it all at once.  Lastly, don’t forget to grab an employer identification number from the IRS. It’s like a social security number for your business.

Open A Business Bank Account

Every lawn care business needs to open a business bank account to separate your business and personal finances. Business bank accounts can be either online or from physical banks and credit unions. Online banks tend to have better offers, but they might not offer the range of business credit card accounts you can open in the legacy banking system. If credit accounts or making cash deposits are important to you, go with the legacy banks. Learn more.

Lawn Care Professionals Need Business Insurance

You’ll want to get lawn care business insurance including:

• General liability insurance
• Property damage insurance
• Workers compensation insurance
• Cyber Security Insurance (since you have people’s credit cards, names, and addresses)

Consider Simply Business to get the most competitive business insurance quotes.

Step 6. Set Up Your Lawn Care Business Finances

Let’s talk numbers. You already have a budget from your business plan, and know what the industry profit margins are. How are you going to get the money for starting lawn care business operations?

Funding

As a new business owner, you’ll need to cover your startup costs.  Landscaping businesses have a low barrier to entry with less than $1,000 to get started, but funding is an important step. Try business financing through one of our partners. Other landscaping businesses have started small businesses with:

• Credit cards
• Angel investors
• Crowdfunding
• Business partner(s)
• Grants for starting a lawn care business (Yes, there are some!)
• Home equity loan
• Friends or family
• Personal finance through savings or wages
• Rollover for business startups (ROBS)

For those wondering how to start a lawn care business with no money, Mike offers a work-to-franchise opportunity. Work for an Augusta Lawn Care franchise for 2 years, and you can open your own landscaping business without paying a franchise fee. Check out his explanation below. [su_youtube url="https://www.youtube.com/watch?v=gvHwwuX5318"]

Lawn Care Pricing Chart 2023

Lawn care professionals can charge based on a variety of factors:

• Lawn mowing prices per hour: $25-$65
• Lawn mowing prices per square foot: $.01-$.05

Jobber created a table that has the average cost of lawn care services. Some of the specialty services can run into the thousands. Create a basic lawn care price sheet after you’ve decided how much to charge. Download our template.

Step 7. Establish Safety Protocols For Lawn Care Services

Occupational Safety and Health Administration (OSHA) created a safety manual for lawn care business owners. It’s a great resource, and it would be wise to use it as a model for your lawn care service.

Step 8. Get Equipment and Software

Equipment and supplies for lawn care businesses vary in price and utility. Let’s look at some of the tools you might need.

Necessary Equipment 

The right lawn care equipment will vary based on the services you offer. Most businesses will need: [su_note note_color="#dbeafc"]

• Work Vehicle: Mike recommends buying used trucks because lawn care business owners can lose a lot of money on lawn care company vehicles if they buy new. We’ll show you why in the costs section below.
• Small Lawn Care Trailer Setup: Make sure you have a truck or trailer large enough to carry all your equipment. Mike uses Ramprack.
• Lawn Mower: You can choose either a riding lawn mower or a push mower. A riding mower is easier to operate, but a push lawn mower is less expensive. Mike uses Greenworks.
• Blower: You’ll need something for blowing leaves.
• Trash bags: To collect the debris from your push mower.
• Trimming equipment: You’ll need trimmers if you trim bushes.
• Weed eater: Weed eaters and edgers are helpful for those hard to cut areas around fences and curbs.
• Specialty Equipment: Depending on the services you offer, you might need other equipment. As a seasonal business, you might supplement your income by performing jobs like snow removal or Christmas light hanging that require other tools.

[/su_note] For those of you who have never mowed lawns, please learn how to start a lawn mower before taking on jobs. It would be really embarrassing to get to jobs and then your customers review your business online with a review like this: In addition to the tools to do the job, you’ll also need software to run the business. For more advice on equipment and setting up a lawncare business, watch this interview with Mike:  [su_youtube url="https://www.youtube.com/watch?v=RLeOYgF54tE"]

Software for Starting a Lawn Care Business

A lawn business will need some software to manage potential and existing customers. You might want to check into some of the providers that Mike uses.

• Service Autopilot: This is customer relationship management (CRM) software specifically for lawn care businesses.
• Clearent: You’ll need a payment processor, and since Clearent is built by the same company as Service Autopilot, they’ll work together seamlessly.
• Quickbooks: You’ll want accounting software. Most business owners go with Quickbooks because almost every software company integrates with them. 

Costs

When you start your own lawn care business, you should expect the following costs. These numbers were calculated by using the industry and sector numbers from IBIS World as benchmarks. I assumed there was 1 employee, the business owner.

Potential Costs For Lawn Care Using Benchmarks From IBIS WORLD
	Low	High
Revenue	$ 130,000.00	$ 130,000.00
Wages: 20-56% of revenue	$ 26,000.00	$ 72,800.00
Purchases: 17-38% of revenue	$ 22,100.00	$ 49,400.00
Marketing (1.2% to 1.9%)	$ 1,560.00	$ 2,470.00
Depreciation (1.2% to 3.7%)	$ 1,560.00	$ 4,030.00
Rent (1.5 to 2.3%)	$ 1,950.00	$ 4,030.00
Utilities (.3% to .4%)	$ 390.00	$ 520.00
Other Costs (16% to 24.9%)	$ 20,800.00	$ 32,370.00
Profit (Loss)	$ 55,640.00	$ (36,400.00)

As you can see, a lawn business can either have high profit margins or fail to become a profitable business if they fail to control three main expenses: [su_note note_color="#dbeafc"]

1. Labor: Notice in the example above, the business owner is giving themselves a nearly $73K salary and not leaving any money for the business.
2. Purchases: Looks like the business owner in the high model was spending on some extravagant tools, while the low cost model was managing business expenses.
3. Other Costs: The other costs could include taxes, interest payments, and more. That’s why many business owners discourage loans.

[/su_note]

Step 9. Develop a Sales and Marketing Strategy

You’ll want a sales and marketing strategy when you are pursuing residential or commercial customers for your lawn care company. You’ll want to implement some or all of the following tactics when starting a lawn mower business.

1. Create a Lawn Care Business Website
2. Use Social Media
3. Create Lawn Care Business Ads
4. Sign Up With Registries for Local Businesses
5. Create a Lawn Mowing Business Card
6. Print Lawn Mowing Door Hangers and Mailers
7. Ask for Reviews and Referrals

Your sales and marketing strategy will be the foundation for your automation. As Mike told us: [su_quote]To get to $1 million in sales, you’ll have to automate processes.[/su_quote]

Create a Lawn Care Website

We already mentioned creating a website, but make sure to implement search engine optimization to get better results. At UpFlip, we use SurferSEO and Ahrefs. You can also perform a quick test to check how your website is performing.

Use Social Media

Instead of spending time scrolling through social media, make it work for your business! Create social media accounts and share your lawn care service prices, useful information, and information about how to care for lawns. Facebook and Instagram provide free insights for business accounts, plus you can create paid ads. 

Use Paid Ads

Mike told us he loves using paid ads on Google and social media platforms. Small business owners should definitely use them. He told us: [su_quote]Paid ads are amazing because you can turn them on and off to control the flow of leads. When you have a period that looks like it will be low cash flow, turn [the ads] on and you’re making money again.[/su_quote]

Register With Local Business Directories

When you’re wondering how to start a mowing business, you might not think about the sites you can register to get reputable backlinks and referrals to your business. You’ll want to list your services on:

• Google Business Profile
• Thumbtack
• NextDoor
• And More!

Check out Hubspot’s list of over 50 business directories.

Get Lawn Mower Business Cards

You’ll want to market your lawn care business and one of the easiest ways to do it is to give a couple business cards to clients so they can give them to their friends. Check out our blog about the best low-cost business cards.

Print Door Hangers and Mailers

Consider creating mailers, brochures, car magnets, flyers, t-shirts, and other promotional swag as a way of getting your name out there. Use an application like Canva to help.  Several business owners we have talked to suggest leaving one on each of your client’s neighbors’ doorknobs or mailing them an offer to do their lawn next time you’re in the neighborhood.

Get Reviews to Feed the Crews

Don’t forget reviews! They’re a cost-effective way to appeal to customers online. Many companies like Housecall Pro automate asking for reviews to make it easy for customers to let people know they loved your service. Mike emphasized that everything you do has the ability to bring in new customers. Make sure that you’re always doing everything you can to make the experience of working with you a positive one for customers.

Step 10. Hire Employees

Many lawn care entrepreneurs hire lawn care employees for their lawn care company to grow. Mike told us you will run yourself ragged by the time you make $250K if you don’t hire additional lawn care pros. He also explained: [su_quote]To get to $500K, you need a second crew and admin team. The business owner needs to be full time sales.[/su_quote] Hiring is such a huge subject that I suggest checking out our blog about how to hire employees. At this point you know how to start a lawn mowing business, but if you want really amazing results, then you’ll need to pay attention to the next step.

Step 11. A Successful Lawn Care Business Documents Processes

Establish good processes that scale easily and that others can follow. You’ll need them to scale your successful lawn care business. Use Lucidchart to document a process map. Mike told us: [su_quote]At this stage the majority of my time is spent increasing awareness of the business. My team has to run everything so I had to create workflows that would make it easy for them.[/su_quote] Here are the basic steps for documenting a process:

1. Decide what process to map.
2. Document who performs each task.
3. List all steps.
4. Identify where you can save time.
5. Determine the triggers, inputs, and outputs.
6. Create the main path, then map out alternative flows.
7. Implement the process.

Are You Ready to Start Your Own Lawn Care Business?

Now you know answers to questions like:

• How to start lawn care business operations
• How much does lawn care cost?
• Do I need a business license for lawn care?

Best of all, you’ve got insights from someone who knows how to do it and is recognized as one of the fastest-growing businesses in the U.S. How can we help you succeed at your goal to start a successful lawn care company? Let us know in the comments below!

Ever wondered how to start wholesaling real estate?

Todd Baldwin started Baldwin Capital by buying new homes and renting them out—then quickly realized he could make way more money with wholesale property. Today he brings in about $15K/month renting rooms and nearly $2 million annually.

Todd explained to us his wholesale real estate strategies that you can duplicate to make millions with just a few real estate transactions per year.

[su_note note_color="#dbeafc"]
By the time you’re done reading this blog, you’ll be ready for your first wholesale real estate transaction. Click on any of the links below to jump ahead.

• What is Wholesale Real Estate?
• Real Estate Wholesaler vs. Agent
• Wholesaling Real Estate vs. House Flipping
  
• How to Wholesale Real Estate Step-by-Step Guide
  • Step 1. Build a Solid Buyers List
  • Step 2. Forming Wholesale Real Estate Companies
  • Step 3. Create a Real Estate Wholesaler Website and Related Social Media
  • Step 4. Create a Real Estate Wholesale Contract Template
  • Step 5. Identify Opportunities
  • Step 6. Reach Out to the Property Owner
  • Step 7. Sign a Wholesale Real Estate Contract
  • Step 8. Escrow
  • Step 9. Close the Deal
• Resources for Real Estate Investors
  • Find a mentor
  • Read RE Books
  • Real Estate Wholesaling Websites
• Conclusion[/su_note]

What is Wholesale Real Estate?

Want to learn all about wholesale real estate? Maybe you’ve asked some of these questions: What is real estate wholesaling?, What is wholesaling real estate (RE)?, Wholesale Definition?, Wholesale Meaning? What is Wholesale?, Wholesaler definition?

Real estate wholesaling is the process of finding sellable homes that aren't on the market, negotiating to find a seller, and making a profit by selling to a real estate investor before a certain date.

Real estate wholesaling may be focused on:

• A distressed property
• High profit margin homes
• Pre-foreclosure homes

Todd Baldwin told us:

[su_quote]The main thing you need to close a wholesale real estate deal is a long list of people looking for other real estate investments.[/su_quote]

A real estate wholesaling business is a real estate investing strategy that people will commonly use when they don't have the funds or credit for real estate investing but want to get into the real estate industry.

How is Real Estate Wholesaling Classified?

Real estate wholesaling requires a bit of creativity when it comes to NAICS. Depending on how you operate within the real estate market, you might fall into the following categories:

• 531390: Real Estate Management and Consulting
• 53121: Real Estate Sales and Brokerage
• 425120: Wholesale Trade Agents and Brokers

If you are a licensed real estate agent, you might want to stick with the 53121 NAICS classification.

Otherwise, use classification 531390. Wholesale real estate would fall into the subcategory “other” in the IBIS database. From those figures, we know that this industry’s revenue was nearly $3.7 billion in 2021 and is expected to grow 1.8% per year until 2026.

Major Online Wholesale Real Estate Businesses

You'll find it difficult to find exact data on wholesalers, but these are the largest wholesalers online:

• New Western - by far the biggest real estate wholesaler in the US
• Net Worth Realty - in 21 major cities
• SkyStone Acquisitions - focused on Atlanta, GA
• Core Wholesale Properties - Florida homes to repair
• Arkansas Wholesale Homes - wholesaling real estate in Arkansas

Like Keller Offers, many major players in Real Estate Sales and Brokerage have divisions that are similar to wholesalers and house flippers.

Real Estate Wholesaler vs. Agent

The real estate industry has a variety of views on real estate wholesalers. They are effectively competing with real estate agents because real estate wholesalers pursue home buyers to help them sell homes.

Some agents love the wholesale real estate business because it provides another opportunity to increase their revenue. Todd falls into this category. He told us:

[su_quote]I make a lot more money through the wholesaling process! It’s nearly 100% profit. I’ve made up to $50K in 4 hours.[/su_quote]

Other real estate agents don't like wholesale real estate strategies because wholesalers primarily sell to real estate (RE) investors who are cash buyers looking to drive up local market prices by providing long-term or short-term rental properties.

Todd told us:

[su_quote]I made a commitment when I started renting homes that I would never raise rents on people. Today, I rent some spaces for less than half of the current market value. I still make $700 to $1,300 per room, though.[/su_quote]

Check out our interview with him below.

[su_youtube url="https://www.youtube.com/watch?v=jeO1dIv5k5k"]

Wholesaling Real Estate vs. House Flipping

Unless they’re house flipping, which involves buying and fixing up a distressed property, real estate wholesalers don't actually buy properties. Both wholesalers and house flippers might do repairs before the property sells, but the wholesaler has a much shorter time to find potential buyers.

When the wholesaler sells the property, they will make their profit based on the difference between the contract price + repair value and the fair market value. Flipping houses works the same way but can be a more lucrative business because flippers can rent out the property as well.

Another wholesaler, Santino Fillipelli, does a little bit of both wholesaling and house flipping. He will occasionally be a wholesale buyer if the property looks like something he can repair with one of his construction companies. He told us:

[su_quote]Basically, we look at, first of all, [and ask] 'What are the margins here?' If this looks like it's a property where we're not gonna hit that $50,000 mark but we see that it's a really good area and there's a lot of people coming in, good tourist attraction, basically we say, ‘Let's turn this into an Airbnb.'

But if we say, ‘Hey, we can make $100,000 off this in five months,' that's not bad. We'll take that. So, it just depends. Interest rates play a role as well.[/su_quote]

Benefits of Wholesale Real Estate

A wholesaling business is highly beneficial for several reasons:

1. Can make nearly double what real estate agents do
2. Helps people get out of distressed homes and improves neighborhoods
3. Much lower startup costs than house flipping
4. Home-based business
5. Lower risk than other real estate investment opportunities
6. Can be run as a multiple listing service
7. Can work from anywhere if selling online
8. High profit margin

So, what kind of risks are there when working with distressed properties?

Risks in Real Estate Wholesaling

Some of the risks of becoming a real estate wholesaler include:

• You might not find an end buyer
• Often takes time to become profitable
• Lots of research and math
• Lots of networking (or SEO for virtual wholesalers)
• Difficulty finding motivated sellers
• Inability to gain access to the property
• Fewer revenue options than other real estate investors
• Short contract duration

You might want to consider whether you are a prolific networker. Todd told us:

[su_quote]I like to look for real estate transactions in up-and-coming neighborhoods. Distressed properties may have a low market value, but if the property’s fair market value isn’t likely to increase, it might not be a great deal.[/su_quote]

Like any real estate job, real estate wholesalers rely on their people skills to find and close wholesale deals. Having solid communication skills to win over potential sellers and buyers can be crucial in this business.

How Does Wholesaling Real Estate Work?

If you're wondering how to get into wholesale real estate, consider these basics:

1. Set up a business.
2. Find wholesale real estate opportunities.
3. Reach out to the property owner.
4. Sign a wholesale real estate contract.
5. Find a buyer.
6. Close the deal.

Get ready to learn how to wholesale real estate as we further break down this process.

How to Wholesale Real Estate Step-by-Step Guide

Santino described the process like this:

[su_quote]1. The first thing you wanna do is figure out how your risk tolerance is gonna be. Do you want to pay everything (in) cash? Do you wanna finance it? Where is your money [coming from]?

2. And then after you figured that out, I would begin to look for a deal. I would start out really small and start to leverage.

That would be my best advice to leverage early on. That way you're not risking a lot of your own money. That's the way I started. And for me, that was something that was really great.[/su_quote]

He explained that the leverage he uses to grow his business limits his losses to an original $6,000 investment and a bad credit score.

That's a bit oversimplified because most businesses rely on some extra steps. You'll want to:

1. Develop a list of cash buyers.
2. Form the business.
3. Create websites and social media.
4. Create a wholesale real estate contract template.
5. Identify opportunities.
6. Reach out to the property owner.
7. Sign a wholesale real estate contract.
8. Submit to escrow.
9. Close the deal.

Let’s look at each step of how to wholesale houses and other discounted property listings.

Step 1. Build a Solid Buyers List

A successful real estate wholesaler needs relationships with potential cash buyers. You’ll want a cash buyer who is looking to invest before you start entering wholesale real estate transactions. You'll want to network with:

1. Licensed real estate agents
2. Hard money lenders: Brokers and other people who work with investors
3. Airbnb Superhosts: Check out Ask a Superhost to learn how they operate

Todd explained:

[su_quote]I have a list of 15,000 RE investors that could be potential cash buyers for an investment property.[/su_quote]

Look for people buying properties at places like:

• Real estate professional meetups
• Groups on social media
• Trade conferences

Next, you’ll want to create a business entity to keep your personal finance and business finances separate.

Step 2. Forming Wholesale Real Estate Companies

Before you start trying to approach homeowners of off-market properties, you'll want to form a business as either a limited liability company or corporation with your Secretary of State Office (SOS). This isn't absolutely required, but it will make it easier to find deals if you are a registered professional.

Also, remember to check if you need any local real estate or business licenses. Wholesaling laws vary from state to state, so check with your local business offices.

Do You Need a Real Estate License to Wholesale?

Most states don't require a wholesaler to be a real estate broker, real estate attorney, or real estate agent to get involved in real estate wholesaling, but you will have to describe yourself as a marketing company that helps buyers find, not sell, properties.

The following locations (and possibly others) have written laws regarding real estate wholesaling licenses:

• Oklahoma
• Illinois
• City of Philadelphia

Make sure you check with your local county clerk or business office to make sure there are no other requirements.

Do You Need a Business License to Wholesale Real Estate?

All states have different laws. Some states may require a business license to negotiate a wholesale deal, others may require a RE Agent or Broker License, and others do not require any licensing. You may be required to pay income taxes or business taxes depending on your state. You'll need to check on your state SOS website.

If you are wondering about the real estate agent license, Oklahoma, Illinois, and Philadelphia definitely require one. Other states may create wholesaling laws in the future.

Now that you’re up to date on licensure, one wholesale real estate strategy you’ll want to use is creating a website and social media.

Step 3. Create a Real Estate Wholesaler Website and Related Social Media

Wholesale RE investors will need a website and social media presence to look professional when they're working on a wholesale deal. Without it, how will potential buyers or someone with a wholesale property find you?

When you wholesale houses online, having a website helps you find more cash buyers who can afford the upfront investment with less money going to direct marketing costs.

Todd told us one of the things that makes him different is that he is a social media fanatic. He shares key takeaways so property owners can benefit from each wholesale real estate deal he makes.

Check out our blog on how to build a website to learn how to create your own or hire a website builder on Fiverr.

Step 4. Create a Real Estate Wholesale Contract Template

Every wholesale real estate transaction is effectively two deals: one between you and the property owner and the other between you and the end buyer. Wholesale real estate contracts are necessary for every deal.

You'll want a purchase contract and a seller contract. There are three types of real estate wholesaling contracts:

• Wholesale Real Estate Assignment Contract
• Wholesale Real Estate Purchase Agreement
• Double Close Contract

Wholesale Real Estate Assignment Contract

A real estate wholesaling assignment contract is a contract where the wholesaler sells the right to purchase the house to an interested buyer. It includes a wholesale fee that is in addition to the price the homeowner agreed to sell the house.

You can download a free printable real estate wholesale contract template PDF online. Make sure to consult a licensed attorney in your state to verify that the template you develop is legally binding.

You will need this contract in conjunction with a wholesale real estate purchase agreement contract, which we'll discuss next.

Wholesale Real Estate Purchase Agreement

A purchase agreement is a contract that can be used for wholesale deals between the motivated seller and the wholesaler. The contract will include:

• Seller and buyer information
• Property location
• Purchase price
• Payment method
• Zoning restrictions
• Closing costs and terms
• Prorated and delinquent tax terms
• Occupancy terms
• Access to property terms
• Assignment clause
• Terms of default
• Any additional terms
• Buyer and seller signature blocks

You'll use the purchase contract in conjunction with the assignment contract if other investors will be buying the home. Download our free purchase contract template.

Double Close Contracts

Double closing in real estate investing involves two contracts and two closing costs: One deal is between the homeowner and the wholesaler, while the other is between the wholesaler and the real estate investor.

These are primarily used when wholesaling real estate if:

1. Your profit margin is really high and you want to keep it hidden from the other parties
2. Your state requires wholesaling real estate to use this closing method
3. You do not have a real estate license and the title company requests it

These contracts are basically identical to standard real estate contracts used when buying a home. Real estate agents are not allowed to share closing documents—otherwise, I'd provide a template.

Step 5. Identify Opportunities

Next, you'll want to identify investment property opportunities that you can get under fair market value and sell to cash buyers for a fair price. We asked Santino where to find opportunities and he told us:

[su_quote]…definitely not Redfin or Zillow.

You're probably looking for off-market deals. Some of the best platforms that you can find are Batch Leads, Batch Dialer, or Remine.com.

There are a lot of resources [for] being a real estate agent as well that you have to find off-market properties, so there are both ways.[/su_quote]

He went on to tell us what he looks for in the way of profit margins:

[su_quote]Anything over $50,000 and up. So, if we (do not have) at least a $50,000 profit margin, it's probably not the deal for us.

Or we'll take it, and if it has more of a long-term potential or it's in a really good downtown area, we'll take it and we'll turn it into an Airbnb. And we've kind of switched from long-term rentals to more short-term because they've been way more profitable.[/su_quote]

Establish Your Risk Tolerance

While real estate wholesaling is lower risk than other ways a real estate investor might invest, there are still risks in any real estate deal. You might struggle to attract sellers, or there may be low liquidity to buy houses depending on how the market is doing.

A house that needs a new roof and foundation presents a greater risk than a house that just needs a new air conditioner. Remember to price that into your offer. An air conditioner might justify a $20K to $30K discount, while a new roof and foundation could mean your offer should be for the land value minus demo costs.

Step 6. Reach Out to the Property Owner

Next, you'll want to reach out to the property owner. You can call them, run direct mail campaigns, or reach out in person. Santino told us you'll be a successful wholesaler:

[su_quote]…if you're willing to pick up a phone and knock on a door. The phone's a little bit faster, but knocking on a door, meeting someone face to face and say[ing]:

‘Hey, have you ever thought about selling?’

Or

‘You know, I'm in the neighborhood. Just saw your house, I really love it.’[/su_quote]

Some will be interested and some people won't.

Be prepared to offer them a real estate deal if they show interest. Most real estate investors expect to pay around 70% of the after repair value (ARV) when flipping homes, which means you'll need to calculate:

1. After repair value (use comparables in the area)
2. Cost of repairs
3. Maximum allowable offer (MAO)

The repair value is based on the cost of a contractor or the cost of parts and the time to complete various upgrades. The maximum allowable offer will be equal to:

(70% x After Repair Value) − (Cost of Repairs) = MAO

Let's use an example of a $300,000 market value that needs $20K in repairs.

With that in mind, the highest offer you would want to make the homeowner is:

(70% x $300,000) – $20K = $190K

Anything more than $190K and you're unlikely to make a profit. But if you can negotiate to get the seller to accept a price of $140K, you'll definitely make a nice profit.

Step 7. Sign a Wholesale Real Estate Contract

Once you have agreed upon the terms of the offer, you'll need to get it in writing with the homeowner so you can reach out to real estate investors to find a buyer.

Step 8. Escrow

This stage of wholesaling real estate will be handled by a title and escrow company. The title company will make sure that any liens and tax defaults are identified. They make sure that the deal is ready and that everything goes smoothly for the homeowner, the contract seller, and the end buyer.

Step 9. Close the Deal

After everything has been evaluated, there are closing costs when buying houses. They range from about $1,500 to $7,000 without taxes and can be as high as $30,000 with taxes. Rocket Mortgage has a great article on closing costs.

Once the deal has closed, the homeowner gets the money, you get your wholesale fee, and the buyer has a new property.

Now that you know the process, there are a variety of wholesale real estate resources you may wish to consider.

Resources for Real Estate Investors

Santino emphasized the importance of increasing your knowledge in the industry to maximize your results. Some of the ways you can increase your knowledge include:

1. Find a wholesale real estate mentor.
2. Read wholesale real estate books.
3. Follow wholesale real estate websites and their trends.

Let's look at each of these.

Find a Mentor

If you are new to exploring how a wholesaler makes money, you'll want to find someone with experience to help teach you the market. While wholesaling doesn't require significant capital, the more upfront capital you have, the easier it will be.

If you can interact with someone who has already developed a process, you will learn how to do wholesale real estate faster. Some places you can find RE wholesaling mentors include:

• Facebook groups: Find wholesaling groups.
• Real estate professional organizations: The National Association of Realtors (NAR) has a list of professional organizations, and many have local chapters with meetups.
• Check out our blog on how to find a mentor.

Books About Wholesale Real Estate

This section contains sponsored Amazon links that earn UpFlip revenue when you make a purchase.

Check out some of the popular books for wholesale real estate including best-sellers like:

• How to Wholesale Real Estate: Learn ways to get into real estate wholesaling without money. Find it on Amazon.
• Real Estate Finance & Investments: The 17th edition of this textbook by William Brueggeman and Jeffrey Fisher teaches strategies used in real estate investing.
• 21 Ways To Find Off Market Real Estate: Learn marketing strategies like YouTube, SEO, mailers, remarketing, and other strategies to find real estate that isn’t listed.

Check out other popular books about the real estate wholesaling process.

Real Estate Wholesaling Websites

Looking at what the industry is doing well and what it is doing poorly can also be highly beneficial. Make sure to check out websites for real estate wholesaling to get a better idea of what other wholesalers are doing. Here are a few to check out:

• Real Estate Investing Websites: Builds websites for RE investors
• AssetColumn: Wholesaler and flippers market
• REI Kit: List of sites and groups for RE wholesaling and house flipping

Conclusion

Once you start looking, you'll encounter a ton of resources for wholesale real estate investing. You just have to decide you want to get into it, build a network, and close some deals. Once you build a little capital, you can start doing more advanced deals like home flipping or fixing up and renting Airbnbs.

What aspects of the real estate market would you like us to write more about?

Did you know the average cost of child care in the United States is $10,600 per year?

That means there is a lot of earning potential for those who open a daycare business, but you’ll want to choose a good name for your daycare business to help you stand out.

[su_note note_color="#dbeafc"] We’ll help you find daycare names by discussing what makes a good daycare name, providing ideas for names of a daycare center, and helping you understand how to register a daycare business name. Click on any of the links below to learn more about daycare names that will bring kiddos and their family members to you.

• What makes a good daycare name?
• What should I name my daycare business?
• 50 Daycare Names
• 50 Babysitting Business Names
• 30 Cute Daycare Names
• Daycare Names And Logos
• 20 Funny Daycare Names
• 18 Cool Daycare Names
• 50 Dog Daycare Names
• 20 Fun Daycare Names
• 36 Preschool Name Ideas
• 64 Daycare Center Names
• 50 Daycare Business Names
• 44 Daycare Name Ideas
• A Name For Your Daycare: 40 More Ideas
• 64 Fancy School Names
• 62 Preschool Name Ideas
• 30 Nursery Names
• How to register your daycare business name
• Next steps after naming your daycare business [/su_note]

What makes a good daycare name?

Good daycare name ideas normally include some or all of the following:

• Use a memorable name: The easier it is for potential customers to remember your daycare name, the more people are likely to contact you.
• Make it personal: Choose names that appeal to parents and the dreams they have for their kids.
• Choose between daycare and preschool names: Daycare name ideas are for professional babysitters, while preschool names are for businesses that focus specifically on early education for little ones.

Keep reading for lots of good daycare names, preschool names, and school names, too.

What should I name my daycare business?

There are all kinds of unique daycare name ideas. Consider some of these names for daycares.

50 Daycare Names

50 Babysitting Business Names

Now that we’ve covered babysitting name ideas, let’s look at some cute daycare name ideas.

30 Cute Daycare Names

Cute daycare names are a great way to stand out amongst highly competitive daycare providers. Consider some of these catchy daycare name ideas.

Maybe you’ve already found the perfect daycare name, but there is more to marketing your daycare services than catchy daycare names. Let’s look at how daycare names and logos work together.

Daycare Names And Logos

These daycare name and logo pro tips introduce important marketing tools that can help you attract new families and build a strong brand identity. Consider some of these tips for choosing a daycare name and logo:

• Choose a name that is catchy and memorable. The name of your daycare should be easy to remember and pronounce. It should also be relevant to the type of care you provide. For example, a daycare that focuses on nature-based learning might choose a name like Forest Friends or Little Explorers.
• Create a logo that is visually appealing and professional. Your logo is the visual representation of your daycare, so it's important to make sure it's well-designed and reflects the quality of care you provide. If you're not a graphic designer, you can hire a professional to help you create a logo.
• Use your name and logo consistently. Once you've chosen a name and logo, use them consistently on all of your marketing materials, including your website, business cards, and flyers. This will help to build brand recognition and make it easier for families to find your daycare.

20 Funny Daycare Names

A unique daycare name might add a bit of humor. Consider some of these daycare and preschool names if you want to incorporate some humor into your daycare name ideas.

18 Cool Daycare Names

50 Dog Daycare Names

All the rules that apply to naming a daycare or preschool for children are relevant to naming your doggy daycare, too. Just be sure your name makes it clear who your services are for!

Pro Tip: Want to provide pet care? Read our guide to starting a $60K/month dog boarding business for additional inspiration.

20 Fun Daycare Names

Now that we’ve shared a few names for pup care providers, back to names that are best suited for a child care center!

36 Preschool Name Ideas

When it comes to preschool names, ideas abound. These are some of our favorites:

64 Daycare Center Names

50 Daycare Business Names

44 Daycare Name Ideas

A Name For Your Daycare: 40 More Ideas

Pro Tip: In the early stages of starting your childcare business? Read our article on how to start a daycare in nine simple steps.

64 Fancy School Names

62 Preschool Name Ideas

30 Nursery Names

How to register your daycare business name

Registering your daycare business name typically involves several steps, and the exact process can vary depending on your location. Here's a general guide:

1. Choose a Daycare Center Name: Select a unique and suitable name for your daycare business. Make sure to research whether the name is already in use in your area to avoid conflicts.
2. Check Availability: Check if the daycare business name is available. You can do this by searching online databases of registered businesses in your area or by contacting your local government office responsible for business registrations.
3. Register Your Business: Depending on your location, you may need to register your daycare business with the appropriate government authorities. This could involve registering as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Check with your local government's business registration office to determine the specific requirements and process for registering your business entity.
4. Apply for a Business License: In many areas, daycare businesses are required to obtain a business license or permit to operate legally. Contact your local government's licensing department to find out the requirements and application process for obtaining a daycare license.
5. Renewals and Maintenance: Remember to renew your business registration, licenses, and permits as required by your local government to ensure ongoing compliance with regulations.

Make sure to consult with a legal or business advisor familiar with the regulations that apply to a child care center to ensure that you complete all necessary steps for registering your daycare business name correctly.

Next steps after naming your daycare business

We’ve provided you with things to consider when choosing daycare and preschool names, provided lots of inspiration for creative daycare names, and explained how to register your business after you find the perfect daycare name.

Which do you think are the best daycare names?