WHAT IS REAL ESTATE WHOLESALING

The real estate wholesaling method is to find a deal on a piece of property.  Do quick analyses of the property.  Lock up the property with an offer.  This will give you some time to find an investor.

Go to a few real estate investors and wholesale the deal to them for a $5,000 dollar profit.  Hint: You need to create a cost analysis spreadsheet that you complete and include the cost of repairs and the profit potential.  Don’t forget to include holding costs, marketing costs and builder’s insurance costs for that project.

When wholesaling, it is a good practice to put a contingency that the project is subject to another person’s approval within a certain period of time.

Wholesaling is offering a deal to an investor for a fee for:

  • Finding the deal
  • Locking in the deal
  • Putting together a brief analysis of repairs and profit

The deal must be able to:

  • Include your fee of five to fifteen thousand
  • Bear a profit of at least $30,000 for the investor

Who is most likely to make money using this method?  There are bigger firms that purchase large portions of real estate for pennies on the dollar.  The firm will unload individual properties to smaller investors for a profit.

A smaller time real estate investor can find deals.  This method is a way to make extra money.  The wholesale method should not be a means for constant flow of income.  Don’t forget that you have to pay taxes on capital gains.