Real Estate Wholesaling gives you the opportunity to build income with little capital or credit.
To get started with real estate wholesaling you’ll ll you need is some specialized knowledge and the commitment to take action. The more committed you are and the more driven you are, the more money you will make. You might be asking yourself “if you need to be a Realtor?” A license is not required to buy or sell any property that you have an equitable interest in. Those interests can be a contractual (you have the property under contract) or you actually own or have title to the property. However, having a license or aligning yourself with someone that does can be very beneficial in monetizing all your leads and it is something that you should really consider if your wholesaling real estate.
What is Real Estate Wholesaling?
[pullquote align=”normal” cite=”Investorpedia“] A: Real estate wholesaling is similar to flipping except that the time frame is much shorter and no repairs are made to the home before the wholesaler sells it. A real estate wholesaler contracts with a home seller, markets the home to his potential buyers, and then assigns the contract to the buyer. The wholesaler makes a profit, which is the difference between the contracted price with the seller and the amount paid by the buyer. The goal in real estate wholesaling is to sell the home before the contract with the original seller closes. A typical wholesaling scenario looks like this: The wholesaler has a house under contract for $90,000 that he estimates needs $20,000 in repairs but will sell for $150,000 once the repairs are made. Using his network of investors, he finds an eager buyer at $100,000. He assigns the contract to his investor, who then has a profitable fixer-upper project, and the wholesaler made a $10,000 profit without ever owning the home. The key to wholesaling is to add a contingency to the purchase contract that allows the wholesaler to back out if he is unable to find a buyer before the expected closing date. This limits the wholesaler’s risk. As the wholesaler never actually purchases a home, real estate wholesaling is much less risky than flipping, which cannot only involve renovation costs but also carrying costs. Real estate wholesaling also involves much less capital than flipping. Generally, only enough to make earnest money payments on a few properties is sufficient for wholesaling. Success depends on the wholesaler’s knowledge of the market and connection to investors for quick sales. – Source Investorpedia [/pullquote]
The simplicity of real estate wholesaling…
A wholesaler puts a property under contract and appoints or resells the property to a cash buyer or even perhaps an end user for a fee. The investor or retail buyer is simply buying the opportunity to purchase the property at the price secured by the wholesaler, they are taking advantage of an opportunity. This makes for quick closings and fast cash. It also allows you to control real estate without having to own real estate. Real Estate Wholesaling can be very powerful and very profitable.
A real estate wholesaler really does live off of the idea that price defeats all objections. If you can sell a home for a low enough price…well then it doesn’t matter what’s wrong with it, somebody will buy it. A wholesaler focuses on 2 priorities: finding deals and their network of investors to sell those deals to. An investor becomes a very well paid middleman that other investors love. The key to real estate investing is leads and relationships, if you can grow and strength this part of your business you deal volume will explode.
With real estate wholesaling the bottom line is that if you have a good enough deal under contract, there are other experienced investors out there that will be more than happy to pay cash for it. You can easily make 5 to 10k a month wholesaling real estate deals in your local market, questions is are you going to take action.
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