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What is the Real Estate Wholesaling Strategy?
Real Estate Wholesaling Strategy
The real estate wholesaling strategy is a way great way for beginning real estate investors
to cut their teeth in this industry. The real estate wholesaling strategy is when one investor
gets a property under contract and assigns the contract for a fee to another investor.
Real Estate Wholesaling Strategy | Investments
When executing the real estate wholesaling strategy, the only investments or costs to
the wholesaler is the advertising costs. The investor utilizing the real estate wholesaling
strategy should not invest any money into improving the property. Their job is to simply
get the property under contract, advertise the property, assign the property for a fee,
and collect the profits. This real estate wholesaling strategy requires none of your
credit to acquire.
Real Estate Wholesaling Strategy | Property Types
There are two ways to get a property under contract using the real estate wholesaling
strategy: discounted property and mortgage assignment. Discounted property is distressed
property that cannot sell on MLS due to the repairs needed. Therefore, the property must
sell under market value to a flipper who can fix and resell. The job of the investor using
the real estate wholesaling strategy is to get this type of distressed property under
contract, find the flipper, assign the contract, and collect the profits.
Mortgage assignments are when you find a motivated seller and negotiate purchasing the home leaving
the owner financing in place. Then you find an end buyer who cannot qualify for traditional
financing and assign this contract to the end buyer for an assignment fee. This type
of real estate wholesaling strategy is gaining popularity due to stringent lending requirements
from banks.
Real Estate Wholesaling Strategy | Conclusion
In conclusion, the real estate wholesaling strategy is a great place for beginning real
estate investors to begin their career. They can either look for distressed properties
in poor condition or distressed homeowners looking to sell their house with owner financing.
In today’s economy, understanding how to properly utilize either real estate wholesaling
strategy will lead to real estate riches.
For more information on Real Estate Wholesaling Strategy visit www.reimaverick.com