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Wholesaling real estate is the process of finding a motivated house seller, putting that house under purchase agreement contract and then assigning that contract to an end buyer.
Wholesaling real estate is a simple concept but takes work to make happen. Everything must go as planned. Fortunately, there are tactics out there that are proven to work when wholesaling real estate.
Finding motivated sellers is one aspect of wholesaling real estate that you must get good at to keep a steady deal flow. Motivated sellers are homeowners who simply want to sell their distressed property and are willing to do a quick deal for cash at a discounted price to you. Sending yellow letters and postcards to absentee owners regularly is one way to find motivated sellers and keep your pipeline full of deals.
Having cash buyers on hand is the other major key to be successful in wholesaling real estate. Cash buyers can be found by buying lists or contacting realtors for a list. Building a cash buyers list is helpful to sell your deals. Having active cash buyers on your list can also help you sell other real estate wholesalers deals as well.
I began wholesaling real estate out of curiosity. I happened to stumble upon someone online talking about the concept of wholesaling and I found it to be very interesting. The fact that you could make so much money just by assigning a contract from a motivated seller to an end cash buyer made me take action.
I drove for dollars looking for vacant houses that had motivated sellers as owners in hopes to one day wholesale the real estate to a cash buyer. I did not even have a cash buyers list at the time. I found a few vacant houses and wrote yellow letters to the sellers hoping they were motivated to sell their real estate to me at a discount.
Eventually a motivated seller contacted me and we agreed on a price. I mailed the contract to the seller and he mailed it back signed. Now, in order for me to successfully wholesale this piece of real estate I had to find a cash buyer investor in my city to buy it.
I advertised the property for sale on craigslist in the real estate for sale by owner section. Within a few days a cash buyer called me and wanted to look at the house. She went to the house and told me she wanted to buy it. We agreed on a price and settled after the title search came back.
Take action and stay motivated!