What Exactly Is Real Estate Wholesaling?
Real estate wholesaling is where an individual, the ‘wholesaler,’ acquires a contract from the seller of the property and assigns the contract to an end buyer. The end buyers are typically real estate rehabbers or investors who prefer not to spend time finding discounted properties or negotiating with sellers. Wholesaling is one of the best short-term investment strategies and is a great way to break into real estate investing. Wholesaling does not always require significant capital to get started. However, some cash reserves for earnest money and other costs is recommended. Wholesaling can help real estate beginners learn quickly about the market and gain negotiation skills too.
Wholesalers can make a significant profit by identifying off market properties, signing an equitable agreement with the seller of the property and assigning the purchase contract to an end buyer. By acting as the middleman, wholesalers generate income by helping real estate investors find and close deals. However, there are some things to keep in mind to make wholesaling work. We discuss all of this in our 6Figure E-learning Course on Real Estate Wholesale.