Real Estate Wholesaling is simply the process of “getting in the middle”. You put a property under contract and quickly “flip” the property to another buyer.
It’s arbitrage at it’s finest…
Definition of ‘Arbitrage’ – The simultaneous purchase and sale of an asset in order to profit from a difference in the price.
There is an art to negotiating a good deal. A deal that’s good enough and deep enough so that you can make money and also allow your buyer to realize their own profits.
As a wholesaler, you are compensated for that “art.”
(But there’s also a science to it. And anything scientific, broken down to it’s essential parts is easy and repeatable)
You act as a buyer of the property, negotiate your best deal, and once the property is under contract, you then offer the property to other investor buyers in the market.
Why would they buy from you? Simple. You’ve done all the hard work in their eyes. You found the deal, spent the time and money in doing so, put the property under contract, and now all they have to do is step in and take over your position.
These buyers can easily acquire your interest in the existing contract through an “Assignment” (unless your original purchase agreement states otherwise ie: Bank REOs).
You can also conduct what is called a simultaneous closing, back-to-back closing, double-closing, or double-escrow. These are all the same thing.
It simply means that on the same day that you close on your original purchase, you turn around and close on the sale – back-to-back.
I’ve prepared a special training just for you that makes this process easier and faster than you ever thought was possible.