Real estate wholesaling is one of the fast money strategies in real estate and can typically turn a profit for you in 30 days or less with little or no money down.
So how does it work?
Real estate wholesaling is something you can do in any city with little or no money down but it starts with a contract to purchase.
Lets say we have a property that should sell for $100,000 in great condition and lets call it retail or move in ready condition.
You get a call from a seller who inherited this property and their father recently died and willed the property to them. The property is in bad condition, full of junk, looks like a hoarder house, and is in general dis-repair.
You offer to buy the property for $50,000 – a wholesale price direct from the seller.
There are no real estate agents involved and the property is a mess.
You give the vendor $1 as a deposit to make the contract legal and you can now sell this contract to make a profit.
You put an ad online that says “House for sale, must sacrifice 60 cents on the dollar” and offer the property to an investor for $60,000. You are asking $60,000 to cover your contract of $50,000 and make $10,000 in profit for yourself.
You advertise a showing on a Saturday afternoon and 10 people show up to view your wholesale house. The 10 people walk through the property and one of them hands you a cheque for $10,000 to take over the property, you give them your original contract for $50,000 and they close on the property with the original seller.
You just made $10,000 by selling a property wholesale.
You didn’t need a bank involved, you didn’t need any money, just $1 for a deposit.
What you did need was a motivated seller, a little knowledge of real estate, a little bit of negotiating and marketing skills and some guts and grit.
Wholesaling is a great way to get started in real estate and I have students all over the country who are wholesaling properties every month.
My company buys at least 1 house wholesale every week and we sometimes sell the contract to our other clients who wish to close.
All you need to get started in wholesaling is a little bit of education and a little bit of time and the rewards are typically at least $5,000 per house.
If you haven’t wholesaled a house before, I recommend giving it a try, you might get addicted to the rush of fast money.
Respect The Grind,