June 18, 2024


Mad about real estate

Wholesaling Houses: A Step-by-Step Guide

Wholesaling houses is considered the most basic way to invest in real estate. According to some of the most successful real estate investors in the country today, you wouldn’t get anywhere in the real estate investing business if you don’t start as a wholesaler of properties. So if you want to climb your way to the top, you better get started by wholesaling homes.

The first step to becoming a wholesaler is to find properties that you can place under contract. You can do this by placing ads on the newspaper or distributing “we buy houses” flyers. You can also use bandit signs to attract the attention of those who want to sell their properties quickly. However, you should be careful when putting up these signs because they are considered illegal in some cities and states.

You should also contact motivated home sellers because most of them are willing to have their properties placed under contract without asking for a higher selling price. As long as you will be able to help them get rid of their unwanted properties quickly, they are likely to accept your offer to sign a sales contract with you.

After obtaining a contract to buy the property, you must now find an end buyer who will close the transaction. Before you award the contract to a prospective buyer when wholesaling houses, however, you have to make sure if he is indeed capable of buying the property. To do this, you can verify the buyer’s source of income, as well as perform minor credit checks.

Once the prospective buyer has shown proof that he can pay for the house, you can now draw up a new contact with the buyer and proceed with the title work. To speed up the process of clearing up the property’s title, you can ask the home seller for assistance.

Now we’ve come to the part you have been waiting for – closing the deal. The next step to wholesaling houses is to submit the contracts you have obtained from the seller and the buyer to a real estate attorney or to a title company. After you’re finished with the task and a settlement date has been scheduled, you can now collect your assignment fee from the end buyer.

Indeed, wholesaling houses is a simple way to make money in the real estate market. You can earn at least $5,000 in a single transaction without risking your money because you’re not technically buying the property you’re going to wholesale.  So if you want to start building your wealth, you should give wholesaling a shot.

To learn more about wholesaling houses, visit www.Rehab-Real-Estate.com.