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:
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
- 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!
Thousands below market--Won't last!
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.
- 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.
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.