Real Estate Investing: The General View Of Wholesaling
Wholesaling is the quickest and easiest way to make a sale in Real Estate. It is less hassles, with almost no money needed to close on a contract. If you want to make money without putting out money, Wholesaling is the way to go!
First thing to do is to start prospecting for wholesale buyers and sellers. You need to start finding investors and make a prospects list, even before you have a property to sell. How to do that? Networking! You can start with the people in your circle like your friends and business associates. They are potential investors who may also know of some other potential buyers or sellers.
Join your local Real Estate Investment Club (REI). You will meet other investors in the business and you can get some information you might need about the market. Your REI club is truly one of your better resources that you should take advantage of.
Put up “We buy houses” signs in some key areas. Put up as many as you can. It is a sure way to get people to call you and be careful not to break the law. In other words the calls you might be getting are ones that you do not want.
You can also do most commonly used forms of advertising. In the newspaper run an ad in your local paper and put in a buy houses ad. It is also a great tool to use to reach investors.
Once you find a good deal, secure the property with a Contract to Purchase or Option to purchase. You may file a Memorandum or Affidavit which states that you have a Contract to Purchase or Option to Purchase, with a legal description of the property to make known to the public your interest of the property, so as to avoid the seller selling the property to someone else while under contract.
Once you’re ready to close, you may:
* If you have a wholesale buyer, you can:
> Have the Buyer close on the contract > Close with the Seller first, and then close with the Buyer > Do the reverse and close with the Buyer first, then close with the seller > Do the direct deeding approach, where the seller deeds the property over to the buyer directly
* If you are having a timing problem with your buyer, you may close on the contract and keep the property until your buyer is ready to close. However, you have to be able to finance property.
You will need to do business with a Closing Attorney or an Escrow Agent to execute the transactions.
Wholesaling is a great profitable business, one that is definitely worth looking into.
Good luck!