What is wholesaling real estate? In the easiest terms, wholesaling or what you may be use to hearing people call “flipping houses” is the process of getting a house under contract and then assigning that contract to another party for an assignment fee. Wholesaling real estate is a real estate investing strategy used by all savvy investors.

1. Wholesaling Real Estate|Real Estate Investing Strategy
by mrcharls | on March 14, 2013
What is wholesaling real estate? In the easiest terms, wholesaling or what you may be use to
hearing people call “flipping houses” is the process of getting a house under contract and then
assigning that contract to another party for an assignment fee. Wholesaling real estate is a real
estate investing strategy used by all savvy investors.
Wholesaling Real Estate For Cash Flow
There are 3 main challenges when it comes to wholesaling real estate; 1) locating and
negotiating with motivated buyers, 2) locating and negotiating with motivated sellers 3)
managing a contract to get the deal closed
Many wholesalers choose to find properties first, however that is not how I was taught to do it by
my mentors in the wholesaling business, years ago. The first thing you should do is to build a
list of potential buyers. There are many different ways to do this, but the simplest way is to run
small classified ads motivating potential buyers to go to a customized online capture page so that
you can get their information mainly their phone number and email address.
Next you must get the buyers ready by means of gathering as much information about the
type of house they are looking for as well as all relevant financial information that will better
assist you in finding them a house. The information gathered will allow you to create a specific
real estate investing game plan, you know a road map to closing the deal.
Now that you have a list of potential buyers and a road map its time to make offers on properties
that suits your buyers needs so go to Craig’s list and find some FSBO’S (for sale by owners) and
give’em a call. Gather as much information as you can from the sellers about the house but
don’t make an offer just yet. . . remember, never make an offer first, if they give you a price
great, because the more information you know the better you will be prepared to make them an
offer.

2. Now make low offers and get contracts with the sellers with a 45 day close and a property
inspection time period. Remember when wholesaling real estate to always include a clause in
your contract that gives you the right to back out of the contract if the inspection report is not to
your approval.
Wholesaling Real Estate Profits
So now that you have a property or several properties under contract and a list of buyers it’s time
you call your buyer with the opportunity and offer it to them at a discount, remember you have
done all your homework and gathered all relevant info so getting a contract with your buyers is
simply a matter of you matching the correct buyer from your list with the property and assigning
the contract over to them.
So let’s take a look back, you have a contract with a seller for a property for lets say $40,000.
From the info you gathered about the house from the seller and your own research the property
has been determined to be worth $100,000. Now you connected one of your buyers from your
list with this property and got a contract from them for $50,000. Package it all up and get it to
the closing agent because you are about to wholesale or “flip” your first house.
When closing day comes the buyer and seller will go to the title company and close the deal and
you will be there to pick up your $10,000 assignment fee or the difference between $50,000 and
$40,000, never having owned the house, with no money down and no credit check.
Wholesaling real estate is a very profitable real estate investing strategy, if you would like to
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