Wholesale Real Estate Investing For Beginners: How To Be Profitable

Real estate provides one of the best risk-adjusted returns among various income-producing assets. However, it can be hard to get started due to the knowledge needed and the upfront money involved.

What Is Wholesale Real Estate Investing?

The wholesaler acquires the contract from the property’s seller and assigns that contract to a buyer for a fee.

Wholesale real estate investing is when you buy the property with the intent to sell it to someone at a higher price immediately.

In real estate wholesaling, you are typically looking for distressed properties that are below market value.  Since the properties are not in good condition, the owner might not sell them via an agent or Multiple Listing Services (MLS) By offering to buy these properties, you help the sellers who don’t have the time or the money to fix the properties themselves before selling..

What Is Wholesale Real Estate Contract? A real estate wholesale contract is a document between the seller and the wholesaler, giving the wholesaler the exclusive legal right to buy the property at a predetermined price. The wholesale purchase agreement signed between the seller and wholesaler states that the wholesaler can legally assign the contract to another buyer.

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How To Get Started Wholesale Real Estate Investing? Before you ask, “how do I start real estate wholesaling” figure out if you would enjoy this niche of real estate. To start wholesaling real estate; you need to find properties to wholesale and buyers interested in buying the properties.

There are several ways to achieve both these objectives based on the steps listed below. But the most important factor is your people skills.  Compared to any other real estate niche, wholesaling real estate requires you to conduct a lot of face-to-face negotiations.

How To Find Wholesale Real Estate Properties? The most challenging part of wholesaling is to find the properties. These properties are not typically on the MLS.  Most of these buyers have not yet decided to sell the properties. You need to identify the properties, meet with the buyers, and convince them to assign you the contract.

How To Find Buyers for Wholesale Real Estate Properties?

Once you find a motivated seller, you need to market your property to your buyers. It is advisable to have a buyers list and keep it always updated. The wholesaling strategies you use to identify potential sellers can be reused to find potential buyers.

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