Reiwired.com: Wholesaling Houses For Quick Money
The term wholesaling houses often discourages many investors because it sounds like it requires huge capital. Some think that its about selling properties in large quantities to earn huge profits. Many investors feel that they dont have the capital to buy that much houses to sell. Others think that they have to wait for years to reap returns. Little do they know that they earn quick money from wholesaling houses even with little or no capital at all.
This form of real estate investing is often misunderstood by many people. First of all, you wont need huge start-up funds to begin in this business. If you think that you need to buy a house even before you can sell it, youre wrong. You dont buy and sell houses in this industry, you just work with contracts.
Also know as flipping houses, wholesaling houses is basically placing a property under contract to buy it within a given period of time. Under the agreement, the owner will sell the property to no one but you within the term of the contract, say seven days. If you dont purchase it in the stated period, you dont have to worry about getting sued. The owner of the property cant do that as laid down in the contract, which he signed after receiving a sum from you. Some owners accept as little as $50. Thats why you wont need a huge capital in this business. You wont buy houses, youll just put them under contract.
Once the house is under contract, you can start marketing it to prospective buyers. It is important that you build your list of buyers. This list will be composed of people whom you know have the capacity to buy houses, fellow wholesalers, and house rehabbers.
All you need to do is send the information to your prospective buyers and talk to those who are interested in the property. Once you reach a desired price with the buyer, hire an attorney or a title company to help you with the closing.
By the way, we used the example seven days as the term of the contract because thats typically how long a wholesaling houses transaction lasts. Some wholesalers are even able to close a deal in just a day. So if you want quick money through real estate, this business is for you to try.
Check out informative websites like REIWired.com and read articles to know more about this amazing industry.
by: Daniel Mc GreyAbout the Author:REI Wired is the pinnacle of real estate education by serving high-quality content through high-quality videos. Sign up only takes a minute and you can start right away! Learn More