A real wholesaler is someone who brokers real estate such as a real estate developer might do. Making money as a real estate wholesaler is easy to do if you follow some basic steps.
Start with a Motivated Seller
Begin by finding a piece of property owned by a seller who needs to sell now. You can do this by letting your needs be known as broadly as possible using email, direct mailings, newspaper ads, bandit signs, flyers, or knocking on doors. Depending on your available time and budget, you can use any or all of these methods to locate a viable property.
Next Comes Negotiation
It’s crucial you negotiate the best deal you can for the property you plan to broker. As in any real estate deal, a motivated seller will be much easier to negotiate with which, in turn, leaves you more room to negotiate a sweet deal for the buyer.
Get the Contract Signed
As soon as the seller agrees to your offer, get the contract written up and signed. Then deliver the signed contract to the title company so they can start working on the title to locate any judgments or liens that may be in place against the property. Clearing the title is key to the deal going through so you want them working on this as soon as possible.
Begin the Search for a Buyer
Now it’s time t start seriously looking for a buyer. Contact everyone on your potential buyers list to let them know what you have available. Post free ads on the Internet. Set up a Facebook page. Send out emails. Make phone calls. Pass out flyers. Do everything you can to get the word out about the property you have available.
Assign the Contract Over to the Buyer
As soon as you’ve located a buyer and agreed on the terms, get a deposit and assign over your purchase contract. Create an Assignment of Contract Agreement that gives your interest in the property to the end buyer for a specified amount of money. Get a deposit from the buyer at the time this agreement is signed. Once complete, and once the deposit is in hand, deliver the Agreement to the title company.
Close the Deal
Now, it’s just a matter of waiting until the closing date like you would with any real estate transaction. At closing, when the seller and buyer arrive to sign the necessary documents and forms, you’ll be there as well to receive the balance of your assignment fee. It’s just that simple.
Making money in real estate wholesaling by following these simple steps is a perfect way to get started as an REI professional.
