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Somebody that wants to build their income with no credit or capital can do it by investing in the wholesale real estate market. All you need is a little knowledge and passion to be successful. The more passion you have, the more money that can be made. You don’t need a real estate license for wholesaling, nor do you need a license to sell or purchase property that you have an equitable interest in.

This interest is a contractual interest, or you own the property.

A Look At Wholesaling

What is a wholesaler? This is when a person put a property, typically under distress, under a contract and resells it to some other investor. When a wholesaler sells the property to an investor, they tend to use cash, hard money loans or lines of credit. This ensures quick closings on homes that need major repairs.

A wholesaler believes that price surpasses everything else. If a property can be sold for a good price, it won’t matter what the problems are. Someone will purchase it. A wholesaler will focus on two things:

• Locating deals
• Boosting their investors’ network to sell homes to

How You Can Start A Wholesaling Real Estate Business

Wholesalers don’t typically buy properties. Instead, these properties are under a contract with a contingency that focuses on a quick sale for higher amounts toward other investors. If you can’t sell the property, you can always use the contingency and step away from the contract.

The wholesaler is considered a middleman, and a good one will become well-respected and paid by the investors. If you have a good deal in a contract, more experienced investors will pay cash for the home within days.

If you have a home that will sell for $100,000 when fixed up and it needs around $10,000 in repairs, and you have a $55,000 contract, a well-established investor network means you could have a buyer within several days for $65,000. If you bought the home for $55,000 and you have a contract for $65,000, then you made $10,000 in no time.