subject: What Makes A Wholesale Real Estate Deal A No Money Down Deal? [print this page] Other than a very small "Earnest Money Deposit" of $ 100.00 or less, the Wholesale Investor never spends another dime putting profitable wholesale real estate deals together!
Wholesalers are NEVER the "end-users" of the real estate that we put under contract with motivated sellers. So, wholesalers avoid ALL of the typical real estate investing costs that the "end-users" will have to deal with.
Such as:
1.) Holding Costs
2.) Repair Costs
3.) Closing Costs
Successful Wholesalers NEVER pull a dime out of there pocket after the sales contract is finalized between themselves and the MOTIVATED SELLERS, PERIOD!
As wholesalers we are just transferring the interest in a real estate contract between the original seller and ourselves, directly over to the "end-users". The end-users are our Investor/Buyers that want to take ownership of the property that we have under contract with the Motivated Sellers. The end users are the ones that will be buying-fixing selling or renting-out the property we have an interest in.
The "end-users' are the ones who will be putting their money into the deal NOT THE WHOLESALER! NOT YOU! Wholesalers keep their money in their pockets where it belongs. Wholesalers DO NOT risk their money. Wholesaling is the most RISK-FREE type of real estate investing with out a doubt! Nothing else comes close!
So, other than our very small earnest money deposit ($1.00 to $100.00) the wholesaler TRULY will always be working in a "NO MONEY DOWN" deal environment.
Remember, only the "end users" in a wholesale deal invest and risk money! Wholesalers are true "middlemen". Meaning, we only pass the interest in the real estate in question from one party to the next party and collect a "fee" for doing so. We are sort of acting a "brokers" of distressed real estate. Making a connection between Motivated sellers and their distressed property, and the Investor/Buyers who want to own those distressed properties. And for providing this service, the wholesaler gets paid a his fee.
Once the Motivated Seller and the Investor Buyer have been joined together by the Real Estate Wholesaler, the Real Estate Wholesaler is paid his Assignment Fee , and is then "OUT OF THE DEAL" forever! PERIOD! END OF DEAL
Then its on the next profitable Wholesale Deal for the Real Estate Wholesaler!
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