What You Need to Know About Wholesaling

There’s one way by which you can earn $5000 in real estate – known as wholesaling.

Either you can buy a house, rehab it and sell it for a profit. Or you can sell it once you buy it without any renovations.

In other words, making money on a house that you never own. In fact, not owning the property is the key to successful wholesaling.

The first step involves finding a home that has good equity. Also, make sure that it is still owned by the homeowner himself so you can get it under contract. Also, take your time and close the sale in 30 to 60 days.

Now, place the words “and/or assigns” under the contract for a sum of – let’s say – $45000. Offer the homeowner a deposit of $10 to start work on the house.

The next step is to run an ad in the ‘houses for sale’ section of the paper. If the house has good equity, you’ll get several calls. Take note of the names and numbers that you can use when wholesaling other houses too. Once you find a buyer, transfer the property to his name for $50000.

So, you can pay the homeowner his $45000 while you keep $5000 for your work. This is pretty profitable work just for investing $10 as deposit and answering calls.

Of course, the option of rehabbing and selling it at a higher profit also exists. This depends on whether you have the finances to rehab the home.

That said, and with either option it’s a win-win situation for everyone.