Incorporating Wholesaling into your Real Estate Business is one of the many ways from which you can earn. Wholesaling requires knowing where the best deals are and being fair in suggesting it to a buyer.
What Is Wholesaling?
Wholesaling is a way of purchasing a low-cost or distressed property and reselling or reassigning it to another buyer or investor. However, a greater percentage of the total profit should go to the buyer who may reconstruct the property for selling or would have it sold again for a higher rate without overpricing. It is then important that a wholesaler leaves a fair amount of profit for the buyer, who in turn would resell the real estate. In a few words, Wholesaling means hunting down the deals for an investor to add value to the property while getting a relatively fair amount for doing so. If a property is originally at $ 150,000, it may be sold to an investor for roughly an extra $ 5,000-$ 10,000.
What Is Wholesaling?
Foreclosure for Wholesaling
Given the fact that foreclosures will greatly affect the credit of the property owner, wholesalers can help in saving the property and the owner’s credit by negotiating with the lender and the owner. The property will be purchased from the lender at a lower price and pay the outstanding balance and ask for an assurance that the owner will not be asked for the balance anymore.
What to do after purchasing
Since the property has already been purchased, the wholesaler then has the option to reconstruct and/or resell the property. If you do not have the capital to reconstruct the home and add a little more to have it rebuilt, it can be sold to a buyer who is willing to invest on the reconstruction. The property should be sold as immediately as possible for a fast profit. Hunting down multiple deals at a time and selling them quickly even with small profit per property makes wholesaling more financially rewarding.
Over time, knowing how to get the deals and where to get them will greatly help in the process of wholesaling. At the same time, a growing number of investors should be interested in purchasing properties from you which have a greater chance of returning revenues quickly. Once your network of investors has been established, it will be easier for them to release their payment in a short period of time. Some may only take a few days. This is where the promise of “quick turn-around” comes in.
Getting yourself into the Wholesaling business is a good way to make use of your ability to find the best deals. Locating the best properties viable for investors to remodel can help you earn between 7 to 45 days. Because you can sell the property in as little as a few days, you do not have to worry about the responsibility of rebuilding or reselling it again after doing so. After purchasing a number of homes, you may also keep it for yourself as an investment or to make a quick return of capital. For more information on real estate investing go to http://www.annettapowellblog.com
Wishing you much success,
Queen of Real Estate
My name is Annetta Powell and I am your Professional Success Coach of Real Estate Investing and Network Marketing. My goal is to help others experience financial and professional freedom through mentoring, training and personal development.