How does it work

[Saul Guerrero]

I want to know how wholesaling works. So K have been watchong YouTube videos talking about wholesaling. I am not sure if i understand the strategy of wholesaling without cash.This is how I think it works.

First,you find a house

Second,You tell the homeowner you will pay cash for the house even though you dont have any.

Third, your offer gets accepted and you have to pay them but you cant so you give them earnest money.

Then you go find a cash buyer.

You tell him the house is yours and he buys it.

The buyer pays you. And with that money you pay the homeowner. 

Last you make money on the difference between the price you bought it and the price you sold it to the cash buyer.

I know there are more steps abd that it is a lot more complicated than this but I was only wondering if this is the way you pay the homeowner when you dont have money. Or, is this not the way it works. Is there a different way you and the homeowner get paid . Thanks I will really appreciate the help.