Wholesale Real Estate

1. Wholesale Real Estate: A Step-by-Step Guide When you do not have enough cash, wholesaling is the best option to get into real estate. It takes a shorter time to wholesale than flipping houses. Unlike in-house flipping, you do not have to do repairs and renovations in wholesaling, thus exposing less risk. Here are six steps to follow when wholesaling real estate. Get a Motivated Seller You should find motivated sellers with distressed properties they quickly want to dispose of. These properties are suitable for wholesaling real estatefor beginners since their market value is higher than the amount of money you contracted for. You can begin to become a wholesaler through direct mail, door knocking, internet marketing, or any other way that best suits your budget. Sign A Contract with a Seller Ensure you have a negotiated contract with a seller. Your negotiating price should be very low to create room for your wholesale fee. Also, ensure the deal is more attractive to the buyer by leaving enough profit. Find a Property Buyer Begin your search after the property contract is signed. Since it is a distressed property, the end buyer may not be a first-time homeowner. It will definitely be an investor or a contractor who plans to buy the property and do some repairs and renovations before selling it again. Ensure you market your deals to many prospective buyers by building a list of buyers. Negotiate a Deal with a Buyer This is a key step since it will determine the amount of profit you will make off the deal. The profit is obtained from the difference between the reason for buying the property and why you are wholesaling the property. For a faster sale, always remind your buyer that there are some buyers who are also willing to purchase the property. Any interested buyer should leave a good faith deposit until such a time when the investment property goes for settlement. Collect the Deposit and Assign the Purchased Contract to the Buyer

2. After finding a potential buyer and making an agreement, you hand over your wholesale contract to them. You can do this by assigning the contract agreement. This assignment agreement is usually a one- pager that clearly states you, as the wholesaler is, assigning interest, which is in the original purchase contract to the buyer for a specific amount, which is the assignment fee. Close on the Wholesale Property This is the final stage in the wholesale real estate process, which is also referred to as the settlement stage. In this stage, all the relevant stakeholders meet and sign all the necessary documents, then transfer the deed to the new owner. Wholesale real estate is a better option for real estate investment strategy. This comes true when you have little cash, and you want to invest in real estate with minimal risk. Wholesale real estate is also another way of making money in this industry without owning any property. Managing and growing your wholesale real estate business should not be cumbersome. You only need to take the first step and start.