Wholesaler: What Is It and How Does The Process Work For Home Buying
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.
Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 12 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com