subject: Reiwired: The Buzz About Wholesaling Houses [print this page] The real estate investing world is abuzz over what people are calling wholesaling houses. Although this business has been attracting considerable attention over the past few years, it is becoming more popular nowadays. Much of this has to do with the economy trying to recover from the recession.
Because the real estate market is still rising from a slump, property prices have yet to pick up. This is giving investors a rare opportunity to snap up properties for bargain prices. Those who are into wholesaling houses are making huge money from this phenomenon.
Where do they get all the capital they need to purchase the properties they sell? Actually, they started even without a massive capital. They didnt need to have enough money to buy a house because they dont buy houses. What wholesalers do is place a property under contract. What they sell is the contract to buy that property. By assigning that contract to a buyer, they will get an assignment fee. $10,000 is a normal assignment fee. Imagine earning $10,000 in a matter of few days just by find properties and buyers.
You earn money without putting down any capital. Because of that, this business is known as the doorway to the world of real estate investing. When you secure enough capital, you can start rehabbing properties. In the future, you can even have enough money to venture into real estate development. But if you dont have the funds, wholesaling houses is the way to go.
Just remember, this business is fast-paced. From finding properties to finding buyers, you must operate fast. That is why it is also called flipping houses. When you place a property under contract, that agreement will only be valid for a few days or weeks. If you dont buy the property within that period and want to extend the contract, you must pay holding costs. If you choose to let go of it, youll lose an opportunity to make huge money.
What you can do to avoid these scenarios is advertising your business. Tell people you meet that you are buying properties. They might refer home owners to you. That way, you will find more properties to wholesale. You can also try building a buyers list. This is a list of buyers who are ready to purchase properties. Wholesaling houses is easier with this list. Upon finding a property for sale, all you need to do is place it under contract and then contact the names in your buyers list.
