If you’re looking to get into real estate without investing your own money and turn a quick profit, you need to understand the wholesaling technique. You can go about wholesaling a property several different ways. The best way is writing the purchase contract so that is assignable. Meaning that you don’t have to purchase the property outright. Instead, you can assign it for a fee to a rehabber or any other real estate investor.
The Assignable Wholesale Contract
Making the standard purchase agreement assignable is not difficult. In the space that lists you as the purchaser, all you need to do is print your name followed by the words “and/or assigns”. You now have an agreement to buy the property but you also have the option to assign it to another buyer. It can be a good idea to ask the seller to initial that addition so there is no confusion in the future.
You are probably going to have to put a little money into the deal in the form of earnest money when the purchase agreement is written. But this doesn’t need to be anything substantial. Many wholesalers put as little as $10 down. Getting this accepted is mostly about how you phrase it when you explain it to the seller. In a confident voice state: “I’ll give you my standard $10 earnest money and we’ll close the deal in 45 days or less.” When you use a standard purchase agreement and let the seller know this is the way you normally do business, most sellers are fine with a small deposit.
Finding Buyers of Wholesale Real Estate
There are plenty of wholesale buyers out there and they are not hard to find. In fact, as soon as you have your first property under contract, you want to start building a buyers list that you can refer back to for future deals. All you need to do is constantly run a couple ads on craigslist or in your local newspaper classified ads.
Real Estate Investor Special
A Wholesale Deal Every Rehabber Will Want
Wholesale Real Estate Deal of the Month
Thousands Below Market Value – Won’t Last Long
You can expect multiple calls from multiple investors. One will be the right fit for your current property. From others, you want to learn about the properties that they are interested in investing in. Build a list of these buyers so that you can wholesale flip to them when you come across the deal type they have expressed an interested in. In a short time, you should be flipping about three or four houses a month. If you clear $5,000 on each deal, you’ll have a decent income for a few hours of work each week.
Author bio: Brian Kline has been investing in real estate for more than 30 years and writing about real estate investing for seven years. He also draws upon 25 plus years of business experience including 12 years as a manager at Boeing Aircraft Company. Brian currently lives at Lake Cushman, Washington. A vacation destination, a few short miles from a national forest in the Olympic Mountains with the Pacific Ocean a couple of miles in the opposite direction.