Wholesaling Real Estate is the best way to start in Real Estate Investing! The reason being, the startup cost is low and if you are taught correctly you can make 6 figures your first year! This is how I started my Real Estate Investing career and it just happens to be the base for your whole business because this technique is where you will get all your leads for all your future exit strategies.
The wholesaling real estate definition is basically when you can flip a house without having to fix it up. You can get a property under contract and quickly sell it to an end buyer for a profit without having to close on the property. You can use two different methods to do this.
Assigning The Contract
Assigning the contract is when you get a property under contract with the seller, using A Purchase and Sale Agreement with the seller. This Contract you sign with the seller will give you the right to buy the property or Assign the contract to another buyer. In order to do this, the contract has to have the following language after your name or company name that you are using to write the contract. “And/or Assign.” For Example, if your company name is ABC, LLC you will need to make it ABC, LLC and/or assigns.
Double Closing is when you get the property under contract but for some reason you cannot assign it, so the Escrow agent will close the first transaction with you and the seller, that is the A-B contract and then now you are the seller of the property, you sign another contract between you and the buyer, which is the B-C contract. All this happens the same day and you make the difference. This is a good method if you do not want the buyer or seller to know how much you are making on the deal.
DEEPER BREAKDOWN OF WHOLESALING
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