subject: 6 Quick Steps To Profitable Wholesaling [print this page] Wholesaling real estate properties is making a number of investors richer. This business is simply assigning contracts to purchase real estate. It is hot today because there are a lot of properties that maybe wholesaled to other investors who also hope to make money. For those who are interested, here are the six quick steps to doing this business right.
Look for a house for sale. The most profitable deals today are houses that are vacant and run down. Thats because these dilapidated properties may be purchased at discount prices. Buying at wholesale prices is the key to this business, which is also called flipping houses in many areas across the nation. Look around your neighborhood and you will surely find houses that are boarded up. Look for signs of neglect like overgrown lawn of chipping paint in front. Be sure though that the property, despite looking bad, is in a good neighborhood.
Place it under contract. Once youve found a house, trace the owner and have the property under contract. Make sure you are using an assignable sales contract. The wholesaling agreement will give you the right but not the obligation to buy the property. You will then make an earnest money deposit to the owner. Some investors use $100 as deposit but it will really depend on your agreement with the owner.
Look for a buyer. You buyer is unlikely a home buyer. Since you will sell the house as is, on in its present state, chances are investors will go for the property. So, search for motivated investors or those who have interest in owning investment properties in that area.
Assign the contract. Once youve found a buyer, you will assign the agreement to the buyer. The interest and right to buy the property will now rest on the buyer.
Close the deal. You can use a title company for the closing. Dont forget to collect your assignment fee, which is your reward for wholesaling the property.
Assignment fees vary depending on locations and on the investor although the range is usually between $5,000 and $10,000.
Do it again. Singer Brian McKnight said Back at One, in one of his songs and you should believe him. Repeat the procedure from Step 1 to ensure that you build enough wealth for an early retirement.
Found this guide quick and easy to follow? Then go to REIwired.com, where youll learn more about flipping houses and real estate investing.
