Real Estate Wholesaling Explained

Wholesaling real estate is quite simple. The following outline below, will give you an idea of how simple it really is. Just don’t complicate it!

#1) Build your buyers list
A good buyers list is one of the most important pieces of your success as a real estate wholesaler. Make sure your buyers list is the first thing you focus on doing before you start looking for properties and getting them under contract.

#2) Find houses that meet your buyers wants and needs
Once you have built up your buyers list, it is now time to start scouting around for properties that fit your buyers needs.

#3) Get the home under contract
Once you have located a house that meets your buyers criteria, you will need to place the property under contract. Make sure to include a way to get out of the contract by including an easy out clause. This protects you in cannot locate a buyer for the property or your buyer does not like what you have to offer.

#4) Show the property to your buyers
Take your buyers on a tour through the property to see if it’s something they have an interest in.

#5) Assign the contract to your end buyer
If the property meets the criteria and needs of your buyer, you will need to establish a selling price/assign fee that you’re willing to assign the contract for. If you are doing a double closing, you will need to follow the same process – pick a price to sell to your buyer for. If you are unable to assign the contract, you may be in a position to do a double close or a back-to-back closing. Once your buyer has accepted the offer and signed the agreement, make sure you get a non-refundable deposit from the buyer at the time of the assignment.

#6) Use the escape clause if necessary
If your buyer does not like the property for whatever reason, use your escape clause to cancel/terminate your contract. Once this happens, the process ends right there.

#7) Set up a closing time and collect the rest of your money
If you are assigning your contract on a house, you may have already sold your position to your buyer. In this situation you may have been paid already. In the event there is still a balance owed to you from the assigning of your contract, you will be waiting for the closing to take place with your buyer and selling to collect the amount owed. Once the closing has commenced, you will be paid the rest of your assignment fee at this point.

Just keep in mind... everyone that started out in real estate wholesaling started out not knowing much at all. Just join a few real estate forums to learn some extra tips here and there. Real estate forums are an excellent place to learn and network with other investors.

If you haven’t grabbed your FREE Report titled "6 Simple Steps To Wholesaling Success", make sure you click here now to get it.

To your investing success!