Why wholesaling?
I’ve sold more than 150 houses, bought more than 200 rental units, and consummated commercial deals, land contracts, retail projects, and many other sorts of real-estate transactions. But I can honestly say, without a doubt, that wholesaling houses is, by far, the best way to make money in real estate.
Wholesaling houses is all about quick cash—no money or credit needed. Don’t believe it? It’s true; but don’t let the cash seduce you into thinking it’s not hard work—it is. If you don’t mind a little exertion, though, come along with me; I’ll show you just how rewarding this kind of real-estate transaction can be.
I’m going to show you videos of actual negotiations with sellers. I’ll uncover ways to find great deals, explain the basics in simple steps, and much more. If you haven’t “wholesaled” a deal yet, or even if you’ve wholesaled hundreds, I guarantee you’ll benefit greatly by following my roadmap.
To anyone unfamiliar with wholesaling, let me just say that you would be crazy not to start your wholesaling career today. Wholesaling, quite simply, is the process of finding motivated sellers who need to sell their property quickly, negotiating a price, and signing a purchase contract. You then assign your contract, in return for a substantial assignment fee, to a buyer who probably intends to repair or improve the house and sell it.
The challenge in wholesaling houses is in finding great deals. Rule #1: Never, ever try to wholesale properties that are already listed with a real estate agent. What? You can buy properties that aren’t already on the market, with an agent and everything? Correctomundo! Out of the hundreds of deals I have made, I have never wholesaled a listed property.
So, if you can’t look to the MLS (Multiple Listing Service) to find houses for wholesaling, then where do you find great deals? For that matter, how do you write a contract that you can exit, if need be? How do find great buyers for these deals, anyway? How do you determine the selling price? How large an assignment fee should you tack onto that price? $5,000?$10,000?
Reasonable questions. I will answer all of them, and many, many more, in future posts. In the meantime, feel free to post your own wholesaling questions—from beginner to advanced— and I will answer them here. Happy wholesaling!
Stephan is a freelance writer, who often writes about wholesaling houses and real estate tips.
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