All Forum Posts by: Garcia L.

As a wholesaler, the basic idea is that you find a property and write a purchase contract with the seller. Say for $50K as in Josh's example. Then you find a buyer and write a second purchase contract with them, say for $55K. Ignoring the mechanics of how you close these two deals, and the costs, your buyer would bring $55K to the table and get the property. You pay $50K to the seller and they give up the property. You walk away with the $5K difference.

There are many different ways to do this. You can write a purchase contract the seller, assign the contract to the buyer and collect an assignment fee. The buyer pays the original price.

You can write an option with the seller and sell the option to the buyer.

You can use two separate purchase contracts as I describe above. Some title companies will let you use the buyer's money for both transactions - a double close or simultaneous close (same thing). Some won't, and you'll have to use flash cash or transactional funding (same thing) to close the first transaction, then pay off this one day loan with the proceeds from the second transaction.

You can form an LLC, have the LLC buy the property, then sell the LLC to the buyer.

basic jist of wholesaling is you getting a property under contract and then selling it to another buyer.

ie, i get a property under contract for $50,000 and i sell it for $55,000 making me $5000.