subject: Rehab-real-estate: What Is Wholesaling Houses? [print this page] Wholesaling houses has taken the country by storm as more and more people are leaving their usual nine-to-five jobs to make money in the real estate business. Because most experts are saying that this type of real estate investing is one of the fastest ways to rack up huge profits in the housing industry, many people are becoming more interested in doing a wholesale.
Wholesaling basically involves the process of placing a property under contract, which will be sold to a homebuyer or an investor. Unlike when rehabbing houses, an investor doesnt need a huge amount of money to get started in this business. All he has to do is to find a motivated seller whos in need of cash in exchange for his or her property.
Motivated sellers are those people who are willing to sell their homes without bargaining for a higher selling price. These people include those who have undergone a recent divorce or an employment transfer, families who are facing foreclosures, and those who need to move to another city or state.
After meeting and negotiating with the seller, the wholesaler will then draw up a contract to buy the property. But before finalizing the contract, he has to make sure that the property in question has great selling potential. After fine tuning the contract, it is now the time to find an end buyer.
A buyer could be another real estate investor who will flip the house for profit of an ordinary home buyer who will use the house for residential purposes. A good way to attract buyers is to use the local newspaper to advertise. Another alternative is to join a real estate investing club to meet investors, who can be potential clients.
When dealing with a buyer, a wholesaler has to make sure that he is indeed capable of buying the property. Verify his sources of income. Once this particular task has been completed, a wholesaler can now work on the propertys title. He can ask the help of the seller to get the title cleared.
After hammering out the small details, he can now close the deal and sign a sales contract with the buyer. Then the two contracts acquired from the seller and the buyer will be submitted to a real estate attorney of a title company. After all his work, a wholesaler can now collect his assignment fee, which could range from $5,000 to $20,000 per transaction.
Wholesaling houses is indeed a great way to earn money. In addition, it doesnt expose a real estate investor to unnecessary risk since the latter doesnt have to invest money to wholesale a property. So if youre a business-minded person who wants to succeed in the housing business, why dont you try your luck in wholesaling houses?
Meanwhile, to know more about wholesaling and real estate investing, log on to Rehab-Real-Estate.com.
by: Carrie Dawson
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