Are you interested in earning quick money through real estate wholesaling? Want to learn the process? Then, you have come to the right place. In today’s post, we’ll walk you through all the steps of wholesaling houses. Take a look:
Wholesaling Houses: How It’s Done
In order to get started with wholesaling properties, you first need to understand its mechanics and how the process works. Here are the steps that you need to know:
Step#1—Find a Distressed Property for Wholesaling
Distressed properties are those houses which can be purchased under market value. Therefore, the first thing that you need to do is find a property that can be acquired at a discount. By selling such
properties, you can easily earn good profits.
Step#2—Sign a Contract with the Seller
The next step is to convince the seller that you can sell their property in the fastest time. However, they will have to sign a contract with you. Once signed, the contract will empower you to sell the property to a potential cash buyer. The selling price is above the price agreed in the contract. The gap between the two prices is your profit margin.
Step#3—Find the End Buyer
To find a cash buyer, you will have to do some legwork. Create a buyers’ list through different means, such as:
- Advertising properties for wholesale on free websites like Craigslist
- Print and distribute flyers with complete property information
- Email cash buyers
All these activities will allow you to build your list of cash buyers. The more qualified, eager and ready cash buyers you have on the list, the faster you will be able to wholesale houses and close deals.
Step#4—Discuss and Negotiate a Deal with the Cash Buyer
After you find an interested cash buyer, discuss and negotiate a deal with them. This negotiation is truly critical. It will help determine how much money you can make off the deal. At this stage, you can use the contractor’s estimate to your advantage. Also, when negotiating, make sure that all the costs are covered so that you can make profits from the sale.
Step#5—Close the Deal
Once the cash buyer agrees to pay the asked price, then it is time to close the deal. For this, you will have to drive to your title company’s office. This is where you will complete the deal. The process is likely to take 60 to 90 minutes.
At this stage, the contract will be assigned to the cash buyer in order to complete the deal. Furthermore, the title will also be transferred to the investor. It is advisable to choose an investor-friendly title company. This will help conduct the contract closing while keeping all parties involved satisfied. Apart from this, it will ensure that the closing will go smoothly.
Therefore, if you want to wholesale houses, make sure to follow these steps. This will help you move strategically and finalize the deal smoothly.