May 19, 2024

Decoration TipsA

The joy of Business

Wholesale Real Estate Investing

Wholesale real estate investing is where you find a property that is below market value and needing repairs, then you resell the property to a real estate investor without you actually having to buy the property.

You would make an offer on the property and once it is accepted you would then sell it ‘as is’ to an investor. The investor will get the financing, buy the property, and make all of the repairs.

One thing you need to do in the contract is place an addendum giving you the right to assign the contract to someone else. This way you don’t have to apply for a mortgage, have good credit, have a lot of cash (usually $10.00 to $100.00 for a deposit) or make make repairs.

These types of deals can be made over and over in a short period of time. It is not hard to find investors that want this kind of property. They are always on the lookout for them and it is worth a fee (anywhere from $1,000.00 to $10,000.00) to them if the property will be making a profit for the investor. Sometimes the fee will depend upon how good a deal you find. The investor will look at the after repair value to determine the value of the deal.

You can find these types of investors in the newspapers all of the time or you can place your own ad. Real estate investments clubs are also a good place to find these investors. The club’s members consist of investors, hard money lenders, wholesalers, mortgage companies, and real estate companies, etc.

Although you won’t be making the kind of money you could make from flipping the property yourself, you can have fast deals with little money or work. You could build up a little nest egg pretty quickly.

Wholesaling properties isn’t for everyone but it is a good way for a beginner to get started without taking a lot of chances. You will be learning how the real estate investor is figuring the profit potential of a property and that alone is good experience to get before you start buying properties for yourself.