Can You Wholesale Houses without Cash?

Real estate buying and selling is one of the best ways to build your equity. But it is risky, especially if you are new to the industry—with no prior experience or expertise. However, to minimize the risk and start earning, consider real estate wholesaling. This is possibly the safest and fastest way to make money without investing big. Yes, that’s right; you can wholesale houses without cash and yet earn good profits on it.

Understanding Wholesaling Real Estate—How Does It Work?

Wholesaling houses is basically a practice where you acquire distressed properties at a discounted price under a contract. The contract is made with the home seller. In this contract, you agree to market the property to potential buyers. It is then assigned to the most appropriate buyer to close the deal. The profit that the wholesaler makes is the difference between the contracted price and the price paid by the buyer.

No Cash Payment or Capital Is Needed

It is possibly the best strategy available to beginning investors because it doesn’t require any capital or cash payment. You can get the property under contract with the seller without making any payments or investing in repair work. As a wholesaler, the only job that you have is to find a buyer who is ready to purchase the property with cash.

Your Credit Score Doesn’t Matter at All

Even if you have no credit or a bad credit score, you can still reap the benefits of real estate wholesaling. This is because you don’t actually buy properties when you’re wholesaling houses. In fact, you simply act as a conduit or liaison between the home seller and the actual buyer.

So, if your bad credit score is what’s keeping you from investing in real estate, then you might want to think again. Focus on wholesaling houses to enter the industry. This will not only help you make good money, but you will also gain insights into what buyers want and what they don’t. It will further benefit you in progressing forward and expanding your portfolio by trying different real estate investment strategies.

No Down Payment

Since you don’t actually acquire the ownership of the property, it spares you from making down payments. Also, as there is no down payment or cash investment, the risk factor is substantially low or practically null.
Wholesaling houses means faster payment. You don’t have to hold the property for years for repairs and new construction work. In fact, as soon as you find a potential buyer, you can close the deal fast. Wholesaling can help you earn in weeks and sometimes even in days. In a nutshell, you don’t need cash or a good credit score to start wholesaling houses. If you’re passionate and can find cash buyers quickly, then wholesaling houses is a good money-making option for you.

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