Understanding Wholesale Real Estate and How to Get Started
Real Estate investing offers different kinds of investment opportunities. One fun and exciting real estate investing method is wholesaling or wholesale real estate. I like to refer to real estate wholesaling as my own personal ATM. This is because wholesaling is a faster way to make money than some other real estate investing methods. However, with any new investment model, it’s important to learn from an experienced real estate investing coach to maximize your success while minimizing mistakes.
What is Wholesale Real Estate?
Simply put, wholesale real estate is entering into a real estate contract and then assigning that contract to a different buyer. Wholesale real estate investing differs from other real estate investments primarily because the wholesaler doesn’t take ownership of the property. The wholesaler identifies sellers with properties they need to move quickly who don’t want to use a real estate agent.
The way it works is the wholesaler establishes a contract with the seller to purchase the property. Then, when the wholesaler identifies a buyer, the purchase contract is assigned to the new buyer, and the wholesaler doesn’t ever actually own the property.
Your job as the wholesaler is to use your connections to find a buyer to purchase the property for a higher price than your contract with the seller. You then make a profit on the difference between the price you set with the seller and the buyer’s price.
The key with wholesaling is to find a buyer before the contract closes with the seller. Wholesale real estate investing is less risky than flipping houses and allows you to make money quicker. This is where your understanding of the process and networking within the real estate investing space is critical to your success.
Wholesale Investing for Beginners
Wholesale real estate investing is a great opportunity for beginning real estate investors. Because the risks and financial requirements are lower, wholesaling is a great entry point into real estate investment.
Also, finding both sellers and buyers takes effort. For beginner real estate investors that may have more time than money to invest, wholesaling is a great option to cut your investing teeth. Sellers are often looking to unload a property that may need substantial renovations or nearing foreclosure. Buyers are often investors looking for a property to flip or rent. The wholesaler connects the two parties.
By beginning with wholesaling, you can learn the ins and outs of real estate investing and build your network with minimal money required. However, investing in mentoring or coaching will help you get started on the right foot.
If you want your own investing ATM, get started by registering for my Fast Track Wholesaling Webinar. You don’t have to be a real estate expert to start making money this month. In fact, wholesaling is a great way to get started with real estate investing.
I’ll teach you how to make wholesaling easy in five steps. We’ll cover virtual wholesaling, co-wholesaling, assignments and joint ventures. Another important step for all real estate investing is learning how to locate properties and buyers. An experienced real estate investing coach can equip you with the knowledge to find solid investment opportunities.
Get started now with wholesale real estate investing by signing up for my Fast Track Wholesaling Webinar based on over 25 years of real estate investing experience.