Wholesaling for Quick Cash
Wholesaling for quick cash is a relatively risk-free real estate investment strategy. There are four steps to wholesaling real estate. The first step requires locating property owners who are highly motivated to sell their real estate. Step two involves negotiating the purchase price. Step three involves placing the property under contract. Step four requires locating a real estate rehabber or investor to purchase the contract.
In essence, wholesaling for quick cash is a form of house flipping. The primary difference is when buyers purchase real estate for wholesaling purposes they do not have to rehab the property. Instead, real estate is purchased significantly under market value and sold to a property rehabber.
The primary goal of wholesaling for quick cash is to flip the property as quickly as possible while still making profit. Wholesaling involves locating distressed properties such as foreclosure homes and bank owned property.
Real estate offered as "For Sale by Owner" is another prime target for potential wholesaling. Many homeowners turn to FSBO in order to sell their property at a lower price. Doing so allows them to avoid costly Realtor fees and commissions. Oftentimes FSBO properties are second homes which the homeowner needs to liquidate quickly to avoid foreclosure.
Occasionally, homeowners will provide seller carry back financing. In this type of real estate transaction, the homeowner carries all or a portion of the financing, thus eliminating the need to obtain a mortgage note through traditional lenders.
Locating FSBO properties offered with seller carry back financing can bring a mother-lode of profit to savvy investors. When sellercarryback is used, investors can resale the property to another investor or rehabber without even owning the property.
Wholesaling for quick cash is a real estate investors dream come true. Nearly anyone can participate in these types of real estate transactions because there is no need to obtain financing. When financing is carried by the Seller, wholesaling is simply a matter of transferring real estate notes.
There has never been a better time to get started in wholesaling real estate. However, before you begin it is crucial to understand the strategies. We encourage you to learn more about this exciting real estate adventure by perusing our comprehensive wholesaling real estate article library.
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Published on December 03, 2008 at 03:09 AM