Real Estate Wholesaling

Real Estate Wholesaling involves purchasing distressed properties at below-market prices and reselling them to buyers for a profit. To be successful, one must find and negotiate deals with motivated sellers and cash buyers alike.

The top wholesalers possess a network of investors they can reach out to when searching for business opportunities. This makes the process of discovering and closing deals much smoother.

Find the Right Deals

No matter your experience level as a real estate investor or just starting out, finding the right deals can be challenging. That's why having an action plan, understanding your market and building an experienced team are essential for making the process run more efficiently.

One of the best ways to find wholesale deals is by attending local real estate investment clubs and networking with other investors. Not only will this give your name exposure, but you may also learn some helpful techniques for closing deals quickly and successfully.

To stay vigilant in recognizing distressed homes that are selling quickly, use bandit signs and direct mail campaigns to alert those affected of their potential sources of quick money.

Once you have a list of potential deals, it's time to find buyers for them. This could include friends and family members, real estate investors or others in the neighborhood who will renovate and sell the property.

Find the Right Buyers

Wholesalers can find buyers for their deals by marketing to a network of potential investors and entrepreneurs. Building a strong buyer list takes time, but the effort will reap rewards in the end.

Real estate wholesalers frequently partner with motivated sellers who need to sell quickly and receive cash for their property. These homeowners may require a swift sale due to an employment change or health crisis, for instance.

They often employ a range of marketing strategies to gain attention, such as online and newspaper ads, direct mail campaigns, and small billboards.

Once a real estate wholesaler has located a property, negotiated an agreement with its seller, and secured under contract, they must then locate cash buyers for it.

Finding a cash buyer for your local property can be done easily through local property auctions. These events provide an excellent platform to connect with many investors who are actively searching for great deals in their area.

Get the Contract in Writing

One of the most crucial steps in any real estate deal is having the contract written down. Consulting a lawyer familiar with local laws in your state can help ensure that everyone's interests are safeguarded in creating such a contract.

Once you've identified the ideal property and obtained a contract from the seller, it's time to market your deal to cash buyers who can close escrow quickly. You can do this through online resources and networking with real estate investors in your area.

Once you identify a buyer, the next step is to assign the contract to them at an agreed-upon higher price. This is known as the wholesale fee and typically ranges between 5%-10% of the property's market value. With this fee structure, you can reap profits from your property while still receiving compensation for your work.

Close the Deal

Once you've identified a cash buyer for your deal, it is necessary to execute an assignment of contract. This will transfer ownership rights to the property from its original owner for an agreed upon amount (usually your wholesale fee).

Once the transaction is concluded, you can start reaping your reward from this deal. You'll receive an assignment fee for finding and negotiating with buyers and establishing the terms of the arrangement.