Real Estate Wholesale: Does It Work?
Posted on May 16, 2014 | Back to blogAdviceReal EstateReal Estate Wholesale
Ever wonder what wholesaling is?
In terms of real estate, it allows someone to build income with little capital or credit.
All it takes on the person’s part is ambition and a little knowledge you could get by doing a little research on the Internet.
The more you want to succeed at this venture in real estate. the more money you make.
Instead of sitting around and expecting cash to be given to you, you earn it yourself.
That’s a noble concept, isn’t it?
If you do have success at wholesaling, expect backlash from those some who say, “It’s not fair. We didn’t have the same chances.”
You don’t need a license to buy or sell a property that you have equitable interest in either.
Most places say that interest can be contractual interest or you actually own or have the title to the property.
The wholesaler tries to get that property assigned or resell it to another investor.
Most of these deals are done with cash, lines of credit or hard money loans that allow quick closing.
A wholesaler focuses on two things: Finding deals and increasing the network of investors they sell to.
The wholesaler who thrives never buys property and serves as the intermediary for other investors.
What you do is put a contingency on the property that gives you the time to sell the property quickly or move on without any money coming from you.
You have a property that is under contract for $75,000. With a little work and TLC, the house could resale for $130,000.
As a wholesaler, you shoot for the middle ground of $100,000.
It’s similar to the show “Property Wars.”
Those new to wholesale should never get involved in a bidding war for a property.
It’s tough enough to get your feet under you; you don’t need that added stress.
But if you’re looking for quick buck or thousands, this is the way to go.
When done right and you have motivation to do it, it will work in a big way.