What is Real Estate Wholesaling?
Wholesaling real estate happens when real estate wholesalers place distressed homes under contract with the hope of assigning that contract to a different buyer. The wholesaler does not intend on selling or fixing up the property. Instead, they market such homes to buyers for a higher price than they had the property contracted for. Wholesaling real estate isn’t a long-term investment. Most people often confuse it with flipping and fixing, but there are few differences. Wholesaling real estate is usually beneficial when getting into the real estate business but do not have enough cash, but downfalls could include confusion on its complicated and legality contracts. Wholesaling is promoted as the easiest and fastest way of getting into real estate. This is true especially for people looking for money down real estate transactions, or who have low credit. It could work for people that fall under this group, but it’s also a lot more complicated than this. Many professional real estate investors and regular individuals from other personnel can profit from the wholesale of property. Mainly, wholesaling is suitable for individuals who want to get paid quickly when selling in Miami. That usually becomes a chain of many paydays when you get it right.
Below are the important reasons people choose wholesaling:
1. Zero risk
2. The investor needs no money
3. There are no rehabs or repairs or contractor nightmares to deal with
4. No tenants to destroy your property
5. No ownership of any real estate
6. You do not need good credit
Thus, here are five straightforward steps of real estate wholesaling:
1. Find a motivated seller who will sell at a deep discount
2. Put his house under an assignable sales contract between the two individuals.
3. Find a motivated Investor/buyer who wants to buy the motivated sellers house.
4. Assign your sale contract between you and the original motivated seller to your new motivated investor/buyer for a fee (assignment fee).
5. Go to closing and collect your fee (assignment fee)
Hence, buying and selling in the real estate Miami wholesaling field can be a fun and challenging way to generate more income. If you take the skills and advice of those that have learned before you, you can maneuver around the things that may cause you to lose a valuable sale or a useful connection. Thus, there are a lot of different properties in real estate in Miami that are just waiting to be found. Like a treasure, each place needs to be pursued and worked for. When using the right techniques and the education provided in many different areas such as online websites you will find that the return for those treasures will be great. It is an exciting field to work in, and the adventure is well worth it.
Conclusively, if you are interested in this type of wholesaling business, you should start getting an investor list as soon as possible. Remember after you tie up the property by putting it under contract, you need to move as fast as possible. The owner of the property is not going to wait forever to sell, and he may back out of the contract if it takes too long. This is why the investor's list is the most essential part of the real estate wholesaling business. If you set this business up correctly, it is possible to do five or six houses a month or more depending on the investors and the property type in Miami in which you are concentrating. This can add up to quite a substantial income while you will be doing menial work.