Wholesaling Your Way To Riches
Wholesaling homes has never been so popular: Thousands of real estate investors are eager to capitalize on the lowest real estate prices in history, but many don’t know where to start.
Many novice wholesale investors think you need lots of money or excellent credit to succeed. Or, they think there are complicated classes or licensing.
I’m going to show you how anyone can get started as a wholesale investor – even someone with absolutely no experience.
Wholesaling Explained
Usually, there’s a lot of mystery about wholesaling. But it’s pretty easy when you think of it in these terms: You are the middleman. It’s your job to find a seller, put the house under contract and assign a contract to a buyer – nothing else.
You don’t have to put any money down, hire an attorney, conduct a closing or anything else that is involved with traditional real estate. You collect a check for setting the deal up.
Wholesale Investors Depend On Motivated Sellers
The difference between success and failure in this business boils down to one thing: motivated sellers.
It’s your job to find motivated sellers, folks who unfortunately find themselves in foreclosure or who have to sell their homes quickly. Motivated sellers are a literal goldmine.
These days, there is an almost endless supply of motivated sellers.
The battered housing market – the glut of unsold homes, record low housing prices and epidemic levels of foreclosures — is a wholesale investors’ best friend.
Finding Buyers
You’ve found motivated sellers. Now all you have to do is find buyers. But you aren’t just looking for any buyer; you’re looking for cash investors. This is where your fee comes in. You are paid a finder’s fee by the buyer to find the deal.
You’re the broker, and it’s a win-win for everyone involved. Desperate sellers have a buyer for their home and investors save time, money and hassle finding deals on their own. You’re literally handing investors deals.
There are plenty of these types of investors looking for deals. Usually, they’re the folks you see advertising “We Buy Homes.” Or, you can attend local real estate investment meetings to find buyers who are looking for deals.
Now, get the house under contract for a price that allows you and the investor to make money.
Here’s the process:
- Find a motivated seller
- Agree on a price that lets you sell the house quickly and make a profit.
- Get the house under contract.
- Put a clause in the contract that allows you to assign the contract.
- Find a cash buyer.
- Make sure the buyer closes.
- Cash your check.
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