Wholesaling Real Estate - How to Wholesale Real Estate?

http://www.REIClub.com - Wholesaling Real Estate Is A Great Investment Strategy For Beginner Investors. Here's A Quick Video On How To Wholesale Real Estate For Quick Profits...

To Learn More On Wholesaling Real Estate:
http://www.WholesaleInterviews.com/

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got quick video on what wholesaling is, and how to profit with it.

Wholesaling real estate provides an opportunity for someone to build income with little capital or credit, by simply buying below market value and selling below market value.

Wholesaling real estate (aka - flipping)
- Don't take ownership of that property.
- Assign the contract to another (end) buyer - close deal in your place.
- Very low risk - little or no money down!
- Usually sell to to investors with cash, lines of credit, or hard money loans = quick closings

Some investors call it "wholesaling real estate" others refer to it as "flipping properties." Regardless of the term you use, you can make quick cash from properties you don't own.

Step 1: Finding Distressed Properties
- Resources - Real Estate Clubs, Auctions, MLS, realtors, FSBO, Craigslist, etc...
- Profit Margins - Is there room to make money?
- Deposit - amount ranges, but indicates serious buyer
Example:
- Retail Market Value - $100,000 (fixed) - Negotiate price down - $60,000 - Repairs - $10k-$15k - Wholesale Price - $65,000 - YOUR profit = $5k Investor Profit = ~$20k

Step 2: Build Buyers List (refer to cash buyers video in channel)
- Ads (annotation) to show example
- Send Offer Details to Buyers list.
Handy, investor special Great deal for rehabbers!
555-555-5555
OR
Investor special
Thousands below market--Won't last!
555-555-5555

Step 3: Ways to Close (and profit)

Assignment - Name - buyer section you put your name (or your companies name) and/or Assignee. This gives you the right to assign the contract to another buyer for a fee.
- Title - give the title officer (or Attorney) the purchase contract as well as a one-page assignment form showing you assigned your interest in the property to a new buyer. That assignment form will display whom the new buyer is, the amount of the assignment fee, as well as how payout should occur.

Double Close
- use the back-end buyers funds to pass through you and pay off the original seller!
- Traditional Close with Transactional funding
- same Transactional Funding you would for a short sale or REO flip or find a good hard money lender in your area and close on the deal.


Summary, CTA
As mentioned before, wholesaling / flipping real estate allows people with little credit and capital to ease into the real estate business. You are simply the middleman who collects a fee for finding great investment deals. The reason why I say this is a great strategy for new investors is because there is low risk, you get to learn the business, and you make money in the process. I would say this strategy is the most basic, easy to learn, and easy to apply. Essentially, you are getting paid to learn, pretty cool right?

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.
http://www.youtube.com/watch?v=q26cioGxBQk

Category:

Education

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• flipping houses
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• real estate investing
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[HockeyAdvice]

Hey- How old were you when you made your first investment in real estate? And what kind of investment was it? How much did you put down? And what type of Real Estate investments do you make today? If you don't mind me asking- you can write my inbox if you'd like. Thanks!

[reiclub]

@HockeyAdvice - Thanks for your question. I'm 27, i've been involved in real estate for about 15 years, mostly managing rental properties for our family business (buy and holds). My first deal was done 3 years ago, which happened to be an owner occupied home that was being sold by the owner. I slipped in and paid $110K cash, at the time the property was worth around $160K, with about $20K in repairs. I ended up renting the property out and am currently cash flowing $300 a month on it.

[HandsomeDee92]

how does the investor make 20k

[reiclub]

@HandsomeDee92 - If the deal is structured correctly, the Investor can make $20K based on the ARV - After Repaired Value. The investor (end buyer) is purchasing low and selling much higher, whereas the wholesaler is buying low and selling low.

[ofiremusic]

Lets say i have the property under a flex option, and i find an interested buyer ready to purchase, how do i go about going through the final process so i can get paid? im stuck, anyone able to assist me on this one? i think im just missing a few pieces to make this puzzle a full picture. Im also a little confused as to who will be paying me buyer or seller?

Thanks for your help in advance

Marsh

347-366-4112

[reiclub]

@ofiremusic - Hey Marsh, do me a favor, if you could fill out a contact form on our website, on the left hand side you will see a site navigation bar, scroll to the bottom, and click the 'contact us' link. Simply direct the question to me, and i'll be able to further assist you. Thanks for your question.

[brillianthomesInvest]

Wow, you're awesome!

[oyanej]

I suggest you build your Buyers' List first. Working backwards in wholesaling is much more effective. Find out what your buyers are looking for then go find the properties for them - much easier method for sure.

[coolassclay]

VERY informative, thanks.

[nachknock]

@reiclub 3% ROI .. ? or what ROI (rationale/reasons) did you base this purchase on? if you were to attempt to refi this house wouldn't your DTI be to high? sorry, 4 the pointed questions here.

[MyGlobalAdventures]

Hi and thanks for the great videos!!!

I am a newbie wholesaler and wanted to know what order do you present the contracts in during the deal phase. For example do you first have the seller sign an "Options Agreement" and secondly sign the "Purchase Agreement" and then Thirdly do the "Assignment Contract" with the end buyer? With so many contracts out there I just wanted to make sure I have all bases covered....I see some "gurus" refer to getting options agreements while others don't at all

[GeoMasterz]

Nice channel. For anyone interested I have a wholesaling course on ebay for sale. It is Steve Cooks Wholesaling for quick cash. Check out my channel if interested

[HockeyAdvice]

@reiclub Thanks man, have you done any other deals since then? What other kinds of ways have you invested in Real Estate? I know there are tons of ways to invest. Thank you!