Wholesale real estate is a method used by many beginning real estate investors. It allows you to quickly build up cash to use for future investments. Here is a step-by-step tutorial for getting started.
Before getting started, you should set up your business. Set up an entity and get the professional front of your business set up. For more information, check out how to start a wholesale business in real estate.
Find wholesale buyers. You need to find other investors who are willing to purchase wholesale properties to rehab and sell. Learn how to find wholesale real estate buyers. You can find these other investors at a meeting for your local real estate investment club.
Next, you need to get properties under contract. You do this by finding properties that are in distressed condition with motivated buyers. You fill out a purchase contract with the seller. You need to make sure and cover your tracks by including proper out clauses (talk to your attorney to set this up).
Assign the contract to your buyer. Part of the assignment agreement will set forth what the assignment fee will be. You will typically be paid at closing.
Your buyer goes to closing and closes on the property. They will have a copy of the original purchase contract and the assignment contract. The wholesaler does not usually need to attend the closing. The title company will mail a check or send a bank wire to the wholesaler.
You got paid and did your first wholesale deal.
Written by bubbabendog
Marketing entrepreneur
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