Todays Topic: Wholesaling
Have you ever purchased a home? Chances are you did not do so with wholesaling. Most commonly what we think of the home buying and selling environment we think of traditional real estate involving both a buyer's and seller's agent negotiating for their respective clients. The process of renovating the property, staging it, listing it on the MLS, finding a buyer, and finally getting the deal to the closing table can take weeks if not months. Selling a home in the traditional environment typically involves lending options that require timely steps such as an appraisal or inspection. There is a reason that this is the traditional way to buy and sell homes, but for those looking for an alternate option that is conducive to certain situations such as, cash and hard money buyers for buy and holds, fix and flips, owner occupant investments, let me tell you about wholesaling.

Wholesaling is most prevalent in the investment community with homes that need to move fast. That is not to say that you could not purchase a wholesale deal for your next home. However, it is common to expect wholesale deals to needs some work that may turn away the average homeowner. These homes are typically distressed properties. Meaning that for some particular rhyme or reason the property needs to be sold. Those reasons could range from an investor needing to off load some capital, a recent death in the family, and even house fires. The wholesaling process benefits the seller with a quick close and quick pay out and it helps the buyer by getting them a discounted property.

That being said, not every wholesale deal is a good deal. The wholesaling process is difficult and some times confusing. Homebuyers should ask questions like:
-What could this property be worth after repairs?
-Will this work better as a rental or flip?
-What is the job market like in that area?
-Are there any special tax assessments?
-Will this property work as *blank* if *blank* does not work?
And many more

Working with a licensed real estate agent as a wholesaler can help you gain answers to some of these complex questions. Make sure to remember that wholesalers only represent their interest in the property. It is definitely a fast moving market that rewards those that build a team and stay educated on the market.