subject: Wholesaling Real Estate Requires a Motivated Seller [print this page] Wholesaling Real Estate Requires a Motivated Seller
If you want to get into real estate investing, wholesaling is an easy way to get started. Wholesaling is when you buy real estate at a low price, usually from a seller that is in financial trouble, and sell it to another buyer for a higher price. The earning potential on a wholesale property is lucrative which is why it is so popular in today's market.
Money is made in wholesaling when you buy the house. Usually you buy the house for well below market value, as mentioned usually because of a seller's financial distress. You can then sell it at a higher price to another investor or a traditional buyer at a fair price. You keep the difference between what you bought the house for and what you sell it for.
One area that you must not overlook is that fact that you need a motivated seller. You must find someone who wants to sell immediately. Many times they are in financial trouble, near bankruptcy, have a death in the family, getting a divorce or any number of other reasons.
The trick to wholesaling is that you need people who want their house sold yesterday! How do you find these people? Most wholesalers advertise or use signs on the road or some other form of marketing to get people calling. I'm sure you have seen the "We Buy Houses" signs on the corner telephone poll. Another trick is to use a local real estate agent that will work for you to help show you properties. Many agents see the value in working with investors for quick cash. Many people will have to be weeded through in order to find a good deal, but when you do it will be worth your time.
Due to the potential to earn lots of money from real estate, wholesaling is the best way to get started. It is pretty low risk, and though it can take some time, has high earning potential. As with any real estate venture, it is best to start slow until you understand all of the ins and outs before investing large amounts of money.
