subject: Make Quick Money When You Wholesale Houses [print this page] Make Quick Money When You Wholesale Houses
You've heard so many things about how to make huge profits when you wholesale houses. Let's try to simplify it. Here's a clear picture of a wholesale deal.
Finding a motivated seller. This person needs to sell his house as soon as possible. His reason may be job loss, divorce, or death in the family. Whatever that is, keep in mind that a wholesaler like you is trying to help him. Then you make him an offer he can't refuse. You give him a deposit of $10 to get his house under a contract. Suppose the market value of his house is $150,000. Since he is badly in need of money, the seller agrees to give it to you for $75,000. Now, you have the right over the property for just $10!
Finding a buyer. A buyer closes the deal because he has the money to buy the property. The buyer just buys your right over the property. This is the "assignment of contract" step in wholesaling. In this example, let's say the buyer is willing to get the property for $85,000. That amount is at your discretion. Of course your goal as a wholesaler is to make a profit out of the transaction.
Closing the deal. When you wholesale houses, it's good if you already have a title company that can help you with papers. When the buyer pays for the house, the deal closes in a title company. So the buyer pays $85,000. You give the seller his $75,000. Then you get your assignment fee of $10,000. It's that easy! All of this can happen within a day. Usually, wholesaling is that quick!
When you wholesale houses, you provide a win-win situation to everyone. First, you just get yourself a huge profit. You know what? You can even close two or three deals on a lucky day! Just imagine your earnings on that particular day. Second, you unburden the home seller. You just get rid of his problem that is beneficial to you and to him. Lastly, you give a great deal to the buyer. He just found his dream house. Or you just give him a better option than retirement and pension plans. He can have it as a rental property.
Wholesaling houses is very easy if you really know how to do it. Go to REIWired.com to learn more about wholesale houses. Learn only from the best.
