Wholesaling real estate (flipping) is one of the best strategies for making fast and smart money in today’s market. However, there is a “right” way to do this and a wrong way.
I believe that wholesaling should be done in “reverse”. In other words, go find the cash buyer first, then go find the property that suits that buyers needs. Watch this video below as I explain the concept at length.
Feel free to grab a copy of Free CD/DVD on Reverse Wholesaling as well. The link is below the video.
Wholesaling real estate provides an opportunity for someone to build income with little capital or credit, by simply buying below market value and selling below market value.
Wholesaling real estate (aka – flipping)
- Don’t take ownership of that property.
- Assign the contract to another (end) buyer – close deal in your place.
- Very low risk – little or no money down!
- Usually sell to to investors with cash, lines of credit, or hard money loans = quick closings
Some investors call it “wholesaling real estate” others refer to it as “flipping properties.” Regardless of the term you use, you can make quick cash from properties you don’t own.
Ways to Close (and profit)
Assignment – Name – buyer section you put your name (or your companies name) and/or Assignee. This gives you the right to assign the contract to another buyer for a fee.
- Title – give the title officer (or Attorney) the purchase contract as well as a one-page assignment form showing you assigned your interest in the property to a new buyer. That assignment form will display whom the new buyer is, the amount of the assignment fee, as well as how payout should occur.
- use the back-end buyers funds to pass through you and pay off the original seller!
- Traditional Close with Transactional funding
- same Transactional Funding you would for a short sale or REO flip or find a good hard money lender in your area and close on the deal.
As mentioned before, wholesaling / flipping real estate allows people with little credit and capital to ease into the real estate business. You are simply the middleman who collects a fee for finding great investment deals. The reason why I say this is a great strategy for new investors is because there is low risk, you get to learn the business, and you make money in the process.
Essentially, you are getting paid to learn, pretty cool right?
To get a free copy of our 10-Day Wholesaling Course, go to: http://kentclothier.com