Who says you can’t invest in real estate without a huge amount of cash on hand? Certainly not those investors who generate huge and stable income by wholesaling real estate!
Being new in the real estate investing business, you have probably heard the word “wholesale” a couple of times but do you really know what it is all about? For the uninitiated, here’s a crash course on wholesaling. Basically, wholesaling is a method of investing in real estate wherein an investor places a property under contract and then finds a buyer for the contract. This method is also sometimes known as assigning or “flipping” contracts.
This method of investing in real estate is perfect for first-timers, especially those who have yet to build a huge reserve of investment capital. Why? Because the main task of a wholesaler is to sell a property that is not his. Unlike when doing a conventional flip, you don’t have to buy the property that you’re going to wholesale.
You might be thinking that this is illegal but I assure you it is not. Wholesaling real estate is somewhat similar to brokering a real estate deal. Like a real estate agent, a wholesaler facilitates the transfer of a property from one person to another and makes profit from it. The difference between a wholesaler and a real estate agent, however, is that for a $100-deposit, a wholesaler can control an investment property worth hundreds of thousands of dollars.
Although this particular real estate investing strategy looks simple and easy, it would be difficult for you to facilitate good real estate deals if you don’t have a good list of home buyers and sellers. Thus, to become a successful wholesaler, you need to build a huge network of buyers and sellers that can help you move properties easily.
So how would you do that, you ask? For starters, you should start brushing up on your marketing skills to attract the attention of motivated home sellers and buyers. You should also attend REIA (real estate investing association) meetings and seminars because aside from conventional home buyers, your potential clients also include your colleagues in the real estate business, particularly those who fix and flip houses for a living.
Do you want to learn more about wholesaling real estate? Beef up your knowledge on investing in real estate by logging on to www.Rehab-Real-Estate.com. The website has everything you need, from articles and videos, to the latest real estate news.
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