Intro To Wholesaling Real Estate For Quick Cash
Wholesaling Real Estate is a opportunity for someone with little cash and / or credit to get started and build a great income. Wholesaling Real Estate is not that complicated, in fact it’s something that someone can learn in less than one day. Wholesaling also does not require a Real Estate license or any special licensing.
This is a key point. You do not need a license to buy or sell a property if you have an equitable interest. That interest can be ownership, title to the property or a contract to purchase the property (contractual interest).
What is Wholesaling Real Estate?
A wholesaler only needs to focus on two things. First, finding deals and second, building and cultivating a network of real buyers. People often say they want to buy or can buy but often can not perform. A wholesaler needs to learn what questions to ask to weed out the pretenders from the performers.
Price can overcome a lot of objections. When a properties price is low enough a buyer will buy because he knows how to do the repairs and he knows what his profit margin will be when the property is sold.
Getting Started Wholesaling Real Estate
The ideal way to wholesale is to assign the contract or assign your interest to the investor buyer. This is not always possible. In the case of purchasing for a bank they will not let you assign the contract. In this case you have two options. One, do what is called a double escrow where you buy the property for about 5minutes then sell it to the investor. Two, you can create a LLC or Trust and then assign your interest of the entity to the investor buyer.
When writing the contract you will always use a contingency clause for unexpected things that may come up. This way you are not responsible for purchasing the property and you can get your deposit back.
A good wholesaler is a very well paid middle man. It’s not hard for a wholesaler to make $100k per year working a couple hours a day. Once a wholesaler has a good reputation, investors will love him and he will be the go to guy for their properties. People will contact him for a quick sale of a home because they know he can get it sold fast. If you have a good deal under contract for $55k and it’s worth $100k you should have no problem selling that property for $60k to a cash buyer in a couple of days.