What is Real Estate Wholesaling?

 Real estate is the perfect business to safeguard wealth for the future. However, there are multiple investment strategies you can resort to get started and it could be tricky to choose just one. This is where my recommendation starts: Real estate wholesaling

In this article, we will be talking about this real estate investment strategy and how to start making a profit from scratch with it. Likewise, you’ll gain access to: 

1. What is real estate wholesale? 
2. Top benefits of wholesaling investments 
3. How do real estate wholesales work? 
4. How can you start wholesaling 

1.  What is real estate wholesale?

Real estate wholesaling is a business strategy where a wholesaler finds an investment property and enters into a contract with the property's owner to sell the estate for a slightly higher price. 

On the other hand, once the contract is signed, the seller transfers the property's rights to the wholesaler so they can close a deal with an end buyer on their behalf. As a result, the real estate entrepreneur will get a fee for this transaction. 

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It's common for most people to misunderstand the concept of real estate wholesaling. Nevertheless, it's easier to comprehend since it's part of most ongoing business models. For example, Amazon buys products from sellers and re-sells them to generate a profit. However, in this case, the products are houses, buildings, or other types of properties.

2. Top benefits of wholesaling investments 

Real estate wholesaling has several benefits for start-up entrepreneurs. These allowances include: 

• Easily comprehensible for rookie investors.
• It's a great way to jump into the real estate business
• Great opportunities in the up & down markets 
• The period estimated between entering the business and receiving payment is usually short. 
• High profits in a short time 
• Risk-free and cost ratio
• No construction or maintenance experience required
• Little upfront investment margin

3. How does real estate wholesale really work? 

Now, let's get into the real deal, how does real estate wholesaling work? The first thing you need to know is that the process is quite simple, even for beginners. 

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As a wholesaler, you need to find a distressed property (a house, condo, mobile home, etc.) that the seller is willing to get under market value. Then, is time to submit an offer for the property and negotiate a price with the seller to lock up the property under contract. Therefore, you'll get the legal rights to sell the property on the seller's behalf at the price you arranged. 

Subsequently, you must look for an investor; it can be a cash buyer or another real estate entrepreneur to sell him/her the contract rights. Later on, you will assign the contract over to the buyer for a wholesale fee. Lastly, after the deal is finally closed, you will receive your profit. 

4. How can you start wholesaling? 

As I have told you during this article, real estate wholesaling is one of the easiest ways to step into the world of real estate investments. However, before diving in headfirst is important you be true to yourself. To be a real estate wholesaler you need to like networking and marketing if you want to succeed. 

With that being said, to start in real estate wholesaling you must build a marketing strategy to attract motivated sellers and off-market properties. This includes working on your social media platforms, searching online optimization (SEO), using SMS services, and cold calling. 

Make sure to get an attorney who checks out the regulations, legal limitations, and licenses required by the state you are going to work in. Also, hit the books every once in a while to know the laws regarding wholesaling. Likewise, you have to build a reliable buyers network through social media or networking events. 

5. To Sum Up 

As you can see, Real Estate Wholesaling is a great investment opportunity to start your wealth-building journey. If you need to sell a house in Houston or any of the surrounding areas, I’m ready to help you! 

Contact me to get you started. In addition to this, don’t forget to visit Top of the Line VA’s website in case you need help to improve your ongoing real estate business by hiring a specialized VA.