Real Estate Wholesaling — Fast Money in a Down Market

Published by julia | Filed under Buyer / Seller Tips, Listings, Miscellaneous, Real Estate

Can you make money investing in real estate in this market? Absolutely! Even in a depressed real estate market, you can still get incredibly high returns in buying and selling houses. However, in order to succeed and get the highest profit possible, you have to know what you’re doing.

Wholesaling is one real estate investment strategy that can be incredibly profitable in this market if you do it right. Wholesaling is basically contract selling in exchange for a fee. This may seem simple, but you really need to cover your bases to get it right. Done right, wholesaling can bring you fast cash. A good example of how it works is to look at a property in poor condition that’s being offered at a price significantly below market value. You could buy the house, fix it up, and re-sell it for a profit, which is incredibly labor intensive. Alternately, you can wholesale the house.

To wholesale a house properly only takes about a month, while fixing it up and re-selling it could take many months or longer! Basically, once you find a property to work with, start contacting other investors you know and let them know you have a property to wholesale. You need to get a contract on the house first, of course. Then, once you find another investor who is interested, you sell them your contract for a pre-determined fee. You need to be sure to get the homeowner to sign a contract with you that allows assignment of the contract, and it’s a good idea to work with the same group of investors over and over again, as they will be familiar with you and your terms (not to mention the build-up of trust!).

Basically, as a wholesaler, you’re acting as a middleman, an organizer of deals. Your services help the struggling homeowner get their house sold and help your network of investors get a good house at a good deal. In return, you get fast, easy cash. In a slow market, real estate wholesaling is a win-win proposition for everyone!