What is Real Estate Wholesaling or Quick Turn and Flipping?
Copyright (c) 2009 Duncan Wierman
Real estate wholesaling is the process of locating and purchasing properties at a bargain price and reselling them to individuals who commonly either flips and sells the property or retains the property for rental purposes. The wholesaler can pocket a nice "finders fee" you might say up to $15,000.00 dollars in some cases but generally averages around $5,000.00. Still this is a very healthy profit and when you can turn over bargain homes in a short period of time you can imagine how much profit one has the potential of making in a years time.
Real Estate wholesaling can be an extremely profitable business; however, you best have your strategies down before investing. It is like putting the horse before the cart if you do not have all your cards lined up before dropping any money on a home regardless if it is a bargain or not. If you do not have the potential to resale the property in a short period of time you sit on a mortgage. It doesn't take much logic to figure out that by sitting on a mortgage you are eating up your potential profit.
This is where a strong exit strategy has to be in place. You need to have a good feel for the region you are buying in and the resale potentials. Buy setting a strong reputation in the real estate market as being a fair and trustworthy real estates wholesaler will increase your success immensely. Do not be afraid to network with known real estate investors who invest for rental purposes. Rubbing elbows never hurts. Be fair in your resale price and make sure the buyer feels the profit as well. This does not mean you need to shortchange yourself, however, make sure the buyer feels the profit as well.
The more knowledgeable you are at putting together offers on bargain properties and have great exit strategies the more successful you will be. Knowing the right kinds of financing to use and how much to offer for a home are imperative to your success. Success equals resale equals profits.
If you already work in the real estate field, you may want to consider branching off into some real estate wholesaling. If you are already great at locating potentially profitable bargain homes, you have half the strategy down in real estate wholesaling. Real estate wholesaling gives an extra flexibility to an existing traditional real estate career. It creates a nice diversification in your real estate career and can open the door to other avenues of real estate wholesaling such as virtual wholesaling.
Real estate wholesaling is the process of locating and purchasing properties at a bargain price and reselling them to individuals who commonly either flips and sells the property or retains the property for rental purposes. The wholesaler can pocket a nice "finders fee" you might say up to $15,000.00 dollars in some cases but generally averages around $5,000.00. Still this is a very healthy profit and when you can turn over bargain homes in a short period of time you can imagine how much profit one has the potential of making in a years time.
Real Estate wholesaling can be an extremely profitable business; however, you best have your strategies down before investing. It is like putting the horse before the cart if you do not have all your cards lined up before dropping any money on a home regardless if it is a bargain or not. If you do not have the potential to resale the property in a short period of time you sit on a mortgage. It doesn't take much logic to figure out that by sitting on a mortgage you are eating up your potential profit.
This is where a strong exit strategy has to be in place. You need to have a good feel for the region you are buying in and the resale potentials. Buy setting a strong reputation in the real estate market as being a fair and trustworthy real estates wholesaler will increase your success immensely. Do not be afraid to network with known real estate investors who invest for rental purposes. Rubbing elbows never hurts. Be fair in your resale price and make sure the buyer feels the profit as well. This does not mean you need to shortchange yourself, however, make sure the buyer feels the profit as well.
The more knowledgeable you are at putting together offers on bargain properties and have great exit strategies the more successful you will be. Knowing the right kinds of financing to use and how much to offer for a home are imperative to your success. Success equals resale equals profits.
If you already work in the real estate field, you may want to consider branching off into some real estate wholesaling. If you are already great at locating potentially profitable bargain homes, you have half the strategy down in real estate wholesaling. Real estate wholesaling gives an extra flexibility to an existing traditional real estate career. It creates a nice diversification in your real estate career and can open the door to other avenues of real estate wholesaling such as virtual wholesaling.