Real Estate

Real estate wholesaling is when an individual, the “wholesaler,” acquires a contract from the seller of a property and assigns that same contract to an end buyer. The wholesaler does not purchase the property, and instead, the owner’s temporary contract allows them to sell it on their behalf. Wholesalers earn revenue through a wholesaling fee attached to the transaction — often a percentage of the overall property cost.

These properties are commonly distressed properties or off-market homes. The current owner no longer needs the property and is unwilling or unable to invest the time and effort required to prepare it for a typical sale. 

End buyers are typically real estate rehabbers or other investors who prefer not to spend time identifying discounted properties or negotiating with sellers. By acting as the middleman, wholesalers generate income by helping real estate investors find and close potential deals.

Wholesaling real estate creates steady income for investors who can identify properties being sold for under market value, initiate an agreement with the seller of the property, and finally assign the purchase contract to another buyer.

A wholesale real estate contract between the seller and the wholesaler is required in this transaction. The wholesaler promises to sell the property for a specified price within a specific timeframe. 

Click the link below to sign up for my next wholesaling real estate class, where I will show you exactly how this is done.