Start Real Estate Investing Through Wholesaling

When learning how to drive a car, teachers are often divided

. Some believe that you should handle a heavy manual truck first so driving a power-steering sedan will be a breeze. Others believe that you should start with the light power-steered car because thats easier. The same could not be said about real estate investing. Thats because a lot of veterans agree that wholesaling is the perfect way to start in the business.

Wholesaling is basically putting a property under contract and then assigning that contract to an end buyer. You earn money through the assignment fee. Saying it is easier is subject to debate but its convenience cannot be contested. Real estate education sites like REIwired.com advise investors to begin in wholesaling. Even celebrity rehabber Than Merrill believes this is the way to start in real estate investing. Than Merrill, who has been featured in reality TV show Flip This House, says that this form of investing is friendlier to beginners.

In a freed investors e-book from REIwired.com, Than Merrill says that the first advantage of wholesaling is the speed of returns. Among short-term real estate investments, this business results in profits the fastest. Those who are already very good at this are able to close deals in just three days. If you earn $5,000 for every deal you close, you can earn $50,000 a month. You do the math how much that will be in a year. Beginners need to earn profit fast to earn enough money for marketing, which will then make sure their business becomes consistent and successful.

Also known as flipping houses, wholesaling also has fewer risks compared to rehabbing or other forms of real estate investing. When flipping houses, you dont need to worry about market changes. It is unlikely that the market condition will change within a wholesale period. That means you wont suffer losses due to market changes. Some investors lose money because the market crashed while they are in the middle of a long-term project.

A wholesale project will also not require you to learn about home repair and improvement, unlike in rehabbing. The only time you are likely to see the property is when you check or appraise it. Some wholesalers dont even enter the properties they sell. They simply send an appraiser and then concentrate on finding a buyer for that property.

And as REIwired.com said, you wont need much capital in this business because you dont actually buy properties; you just pay to put it under a contract to buy it. Less risks, fast cash those are the main points of flipping houses. You can also visit REIwired.com to know more about this real estate investing topic.

by: Daniel Mc Grey

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