subject: The Basics Of Wholesaling Houses [print this page] If you believe that there is no money to be made in the real estate market, then you probably havent heard of the business of wholesaling houses.
In the language of real estate investors, the term wholesaling basically refer to the process of placing a property under contract and then assigning or selling that contract to an end buyer. Being a wholesaler is an easy and lucrative way to make a living amid these troubled times. In addition, it can provide you with the opportunity to rake in huge profits with no money down, no credit, and no risks. To give you an idea on how things work in this business, here are the basic steps to doing a wholesale.
The first task of wholesaler is to find properties to place under contract. One method to easily accomplish such a task is to build a strong sellers list. He should also get himself acquainted with as many motivated home sellers as possible to ensure a continuous and stable source of investment properties.
Once a wholesaler finds someone who is willing to sell his property, both parties are expected to sign a contract. Then, the next step to wholesaling houses is to assign the said contract to an end buyer, who will close the transaction.
When assigning the contract, a wholesaler has to make sure that the buyer is indeed capable of purchasing the property unless he wants to lose his integrity as a real estate investor. Therefore, he has to verify the buyers source of income or if the latter is able to secure a loan before awarding the contract.
After the wholesaler and the buyer have reached an agreement, the two will sign another contract, which will be submitted to a settlement attorney or to a title company. Once the title work has been completed and the two contracts have been verified, a wholesaler can now collect his assignment fee from the buyer on the scheduled settlement date.
When wholesaling houses, a real estate investor usually earns somewhere between $5,000 and $15,000 from the assignment fee he collects in every transaction. Sometimes, the figure can be lower or higher depending on the deal. But if the investor has multiple properties to wholesale in the same period of time, he can pocket at least $10,000 in just a month.
The reason why many real estate investors prefer wholesaling houses is because they can earn huge profits with minimum risks. Because a wholesaler is not technically buying the property that he wholesales, he doesnt have to be afraid of losing all his investment capital. Thus, if you want to make money in the real estate business, being a wholesaler of properties is the way to go.
