How to WHOLESALE HOUSES
If you learn to wholesale houses you also learn to make money in real estate without putting a penny into the deal. How great is that?
Someone who wholesales should try to avoid buying properties. What you want to do is to put houses under contract and focus on selling the property to other investors as quickly as possible. The contract should be with a contingency that lets you back out of the deal if you can’t find buyers.
As a wholesaler you are a middle man that can make a lot of money while providing good value. Your best bet is to get really good at finding deals and then build a list of investors that you can sell to.
Finding properties will take a lot of time. You will also have to be very skilled when it comes to negotiating with sellers. One of the biggest issues for someone wholesaling a house is the relation to the sellers. Sellers can get very, very upset when they find out that you as a middleman made several thousand dollars. This can be avoided by being letting them know what you are doing from the beginning. You can offer a part of the potential profits etc.
Another thing to look out for is your down payments. If you write contingency contracts that lets you back out of the deal when there are no buyers for the place, you don’t want to lose a big down payment. This might sound crazy, but if you sell yourself well enough, most sellers will accept a symbolic down payment of $20.
As it’s time for the contracts, meet with an attorney and have them draw one for you. A bad contract might get you into trouble.
If you try this out. Stay good and stay humble. The deals are only good if everybody walks out feeling like winners.
ps. You can read more about WHOLESALING HOUSES here:
https://www.biggerpockets.com/renewsblog/2006/11/25/wholesaling-real-estate-basics/
http://www.creonline.com/wholesaling-real-estate-step-by-step.html
http://retipster.com/wholesaling-made-easy/