There are a lot of ways in which one can make money in real estate and our personal favorite is dealing in wholesale. When you are dealing in wholesale land, the ownership of property isn’t necessarily yours. You might just assign the contract to another buyer as soon as you have the property under contract. The biggest advantage is that you do not have to exactly own the property which you are going to assign to another realtor. This can be done with a small amount of investment or even no investment from your pocket in some cases.
The key in such a deal is to find a wholesale land for sale, contract of which can be assigned to another investor who can rent, sell it, or assign contract further to another investor. Another important point to keep in mind is that there should be a considerable difference between the worth of property and the price at which you buy it from its owner after negotiation. The sales contract shall say that the owner is the seller and you are the buyer, and it shall be explicitly mentioned that the said property can be assigned to another buyer for which in place where your name or your company name needs to be filled in the form, it should be followed with “or assigns”. It must be noted that, unless you have this small clause added to the form, you may be unable to get the contract assigned for the said wholesale land for sale. Hence, it becomes important that you let the seller know beforehand that you may assign the said property to another real estate investor.
Now the next challenge that arises is to find the right property for wholesaling. It is quite difficult to find properties for wholesaling from multiple listing service’s database. Since most investors keep an eye on MLS, it becomes difficult to buy cheap properties due to competition. Another way of finding property for wholesaling is by finding off market property which can be a wholesaler’s biggest opportunity. Off market properties are basically the properties that are not for sale, hence are quite difficult to come across.
The next challenge is to sell the said wholesale land for sale. Wholesaling requires you to find your own buyers and sell the property fast. One must know how to wholesale or learn it and also learn to find a great deal. As long as you can offer a great deal, there would always be buyers for investing in your deals. If you are unable to get buyers to invest in your deals, it clearly means your deals are not good enough. The amount of money repairs would cost and the actual value of a property must be clear to be able to wholesale.