Wholesaling is the quickest and simplest way to make money in real estate, because , in most cases, you never actually BUY a property. Here’s a brief summary: Step 1: You, the wholesaler, find a property that, for whatever reason, the owner is prepared to sell at a well below-market price. Step 2: You perform an evaluation of the property by researching the fair market value, inspecting to determine what repairs might need to be made and estimating the cost of the repairs. Based on the resulting numbers, you determine mathematically what your buyers will be willing to pay for the property, and figure out an offer that, if accepted, will allow you to make a profit from the sale of the contract. Step 3: You make your offer to the seller. If he finds it acceptable, this agreement is formalized via a written contract that gives the wholesaler the right to purchase the property under the price and terms negotiated with the seller. Step 4: You begin the due diligence process (ordering a title search and pest inspection) so that your buyer will have all of the information he needs to make the decision to purchase the property. This step usually happens, at least in part, simultaneously with step 5. Step 5: Using marketing, your buyer’s list, and other resources, you identify a likely buyer or buyers for the property, arrange for the prospective buyers to view the property, and, after agreeing with the buyer as to price and terms, continue on to step 6. Step 6: You sell your right to purchase the property via an “assignment of contract”. The buyer pays your assignment fee of $5,000-$20,000 (depending on how great a deal you negotiated) and HE, the buyer, buys the property directly from the seller.
The result? A CASH profit for you in 30 days or less, without buying a property, borrowing money, doing repairs, or managing tenants!
Wholesaling has been the quick-cash strategy of choice for real estate investors for decades—and you’ll learn every detail about how to do it in your own back yard at the wholesaling academy!
