Unlimited Profit Potential in Wholesale Real Estate Investing
Real estate investing can be a lucrative business; however, you generally need a good credit history, cash up front and time to invest in the project. For those of you real estate investors who do not have a sound credit history, do not have access to a substantial amount of cash and simply do not have the time, wholesaling in real estate is the answer for you.
What is wholesaling in real estate investing?
The concept of wholesale real estate investing is simple. You sign a contract between you and the seller for a specific amount of money and a specific amount of time. Once the contract is signed, you can then begin the process of trying to find a buyer, which is generally an investor looking to purchase property below market value. You will want to contract the property for the least amount possible and then resell to an investor, at still a low price, but more than what you purchased it for. Once the sale closes, you will get paid.
An example would be if you found a home that was worth $150,000. The seller agrees to contract it to you for $75,000. It needs about $10,000 in repairs. You then find an investor that will purchase it at $80,000. Once the deal is sealed, you get to go home with $5,000 in a matter of days or weeks. Everyone wins in this scenario! The seller is relieved of the pressures of owning a home they really need to get out from under. The real estate investor gets a great deal on a home worth much more than what he paid for the property, and you get a quick profit with getting a sign contract and just putting together the deal.
What is the key to success in wholesaling in real estate investing?
The key is to find a seller that not only wants to sell a property, but also needs to sell a property. When there is an urgency to sell, the owner is more willing to negotiate. These are the people you need to find. They will sell below market value for a variety of reasons. And in buying their property you help them out of a tight spot. It’s a Win Win situation for all.
How do you find motivated sellers?
There are a variety of ways to find these people. More traditional methods are to contact real estate agents and check classified ads. While these are traditional methods, they may not be the most effective.
Marketing, networking and searching for vacant houses or run down houses for sale are much more effective. Marketing is effective because people desperate to sell will actually contact you rather than you having to contact them. Generally, you will then find out about the wholesale deal quicker than other real estate investors. Networking involves establishing relationships with people who have real estate they want to be rid of. Finding vacant houses can take time, but people are usually in a hurry to sell empty houses.
Wholesale real estate investing has unlimited profit potential. With a little time, knowledge and an effective wholesale real estate investing plan, you will be on your way to a lucrative financial future!
Linda Palaske is a co-founder of Free REI Webinars. This website features Real Estate Experts who speak about their innovative and proven real estate systems. To learn more about wholsale real estate investing and REI news, visit http://www.FreeReiWebinars.com and to learn more on wholesale real estate investing, visit http://www.REinvestingToday.com today!