How to Wholesale Houses

If you are considering a change of career, you might want to consider becoming a real estate investor. Investing in real estate is one of the surest ways to earn big profits and recent data showed that unlike in other key industries, there is still big money to be made in the housing business despite the ongoing economic downturn.

One of the fastest ways to rack up big profits in the real estate industry is by wholesaling houses. This type of real estate investing involves the process of placing a property under contract and then assigning the said contract to another buyer. A wholesaler basically serves as a middleman between a home seller and a buyer because he is the one who facilitates the transfer of the property from one person to the other.

The first task of a wholesaler is to find houses that he will put under contract. A good source of such properties is a motivated home seller. According to real estate experts, motivated home sellers are those people who are in need of quick cash and are willing to sell their properties at very low prices. It is because they are in a hurry to get rid of their properties because of a number of reasons that may include divorce, relocation to a new city or county, or financial problems.

Once the negotiations with a motivated home seller are complete, the next phase of wholesaling houses is finding end buyers. Because of recent technology, searching for end buyers is relatively easy nowadays. A wholesaler can easily find the person who will buy the contract by posting an ad on the Internet or running an advertisement on the local newspaper.

Joining a real estate investing club can help, too. By interacting with numerous people of the same profession, a wholesaler can get recommendations or leads to investors who might be looking for investment properties that they could flip or rehab.

One of the most important things that a wholesaler should remember before closing a deal is that he should always check if the buyer is really capable of closing the transaction. Because it is his name that’s on the line, a wholesaler has to make sure that the motivated home seller will get what he or she is hoping for. Therefore, he should verify the buyer’s source of income or conduct a simple credit check.

If you’re looking for a lucrative way to earn money, then you should try wholesaling. An investor usually earns between $5,000 and $20,000 at the end of every wholesaling deal. In addition, he doesn’t have to spend thousands of money just to start in this business because he is not technically buying investment properties. Thus, being a wholesaler is a great way to earn big bucks because it can give you a lot of great opportunities without exposing you to big financial risks.
Meanwhile, if you want to learn more wholesaling secrets and tips, visit www.RehabList.com.