Real estate wholesaling is a strategy used by investors to buy properties at a discount, and then resell them for a profit. This practice is especially attractive to new investors because it requires little to no money down and can be done with no credit. The concept is simple: find a motivated seller, negotiate a purchase price, assign the contract to another investor, and collect a fee as the middleman.
How to Get Started
The most important part of real estate wholesaling is finding a motivated seller. This can be done by networking with other investors, attending real estate auctions, and joining online real estate groups. Once a motivated seller is identified, the next step is to negotiate a purchase price. This is where the investor’s skills come into play. The investor must be able to effectively negotiate a price that is lower than the after-repair value of the property.
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Assigning the Contract
Once the purchase price is negotiated, the investor can assign the contract to another investor. This is done by having the other investor sign the contract and pay the investor a fee for the assignment. The other investor is now responsible for closing the deal. This is a great way for new investors to make money in real estate without having to put up any of their own money.
Advantages Of Real Estate Wholesaling
Real estate wholesaling has several advantages. It requires very little money down, can be done with no credit, and can be done quickly. It also allows new investors to learn the basics of real estate investing without having to put up their own money.
Conclusion
Real estate wholesaling is a great way for new investors to get their feet wet in the real estate market. It requires little to no money down, can be done quickly, and allows investors to learn the basics of real estate investing without having to put up any of their own money.