I'm new to being intrested in real estate. How does wholselling work. I understand that you buy a place, then find somone eles to buy it for more, then you pocket the difference. How do people buy places to begin with? Not too many people have $140,000. I heard one guy say he got money from a lender but even then, how can he pay the lender back if he only pockets the difference? Which isn't the whole $140,000?
Hi @Britney Beverly, It's a little more complicated than a wholesaler buying the house, although sometimes they do. Often they get a contract to buy the house with something called an assignment clause that lets them pass the contract along to the end buyer, with a mark up. The one guy you are talking about bought the house with the 140k, then found a buyer that paid (hopefully) 140k plus his closing and holding expenses and a little extra. People hear that wholesaling is a place to start because "you don't need money" but you do need a lot of knowledge to do this well.