Real Estate Investing Blog - DiscountedProperties.com

You may be familiar with the term “wholesale real estate,” which is used to describe distressed properties that are bought, rehabbed and then sold. However, what exactly is wholesale real estate, and how can you find these properties?

Wholesale Real Estate 101

Wholesale real estate is a general term used to define real estate that is owned by motivated sellers looking to unload their properties. A wholesale property may need extensive repairs, may have a notice of default, or may be REO or bank-owned.

Examples of wholesale property include:

* The homeowner misses several mortgage payments and wants to sell quickly before the bank sends him a notice of default.

* The property is in a state of disrepair, and the seller wants to move without performing any of the repairs.

* The homeowner is motivated to sell because of a move or job transfer.

As a real estate wholesaler, your job would be to locate these wholesale properties via various networking tools. If you want to wholesale real estate, you will likely need to become involved in real estate investing clubs and online sources, just to name a few.

Wholesale real estate may provide a great opportunity for many investors in today’s tough housing market, provided they have a good working knowledge of real estate laws, trends and finances, and can successfully market and sell wholesale property.

Important Elements of Wholesale Real Estate to Understand

However, before you can successfully find, purchase, and sell wholesale property, it is important to keep the following in mind:

* You will need to understand the local and regional markets and be willing to spend the time searching for properties with motivated or distressed sellers.

* You will need to be able to negotiate deals with sellers that are looking to move quickly but still want a fair price for their home.

* You will want to assemble a list of investors willing to purchase wholesale property from you (there are many investors interested in purchasing wholesale real estate but do not want to take the time looking for the properties – this may prove to be very lucrative to you!).

* You will want to network and work together with other wholesalers. This is often the key to wholesaling real estate, as the larger the network of buyers and sellers, the better off you will be when it comes time to selling your wholesale property.

Now may be the ideal time to take advantage of the wholesale real estate market. It is important, however, to educate yourself on how to wholesale property before embarking upon this real estate investing journey.

Because of the national real estate crisis, there has never been a better time than now to dive into the wonderful world of wholesale real estate investing, especially if you want to secure your financial future without actually taking title to property and dealing with late night calls from tenants or putting up with other property management nightmares.

In case you’re not familiar with the process, you simply need to locate a motivated seller, negotiate a sales price for the property, and place it under contract. Instead of closing on the sale yourself, you assign – or sell – your right to purchase the property to an interested real estate investor or retail buyer. By utilizing this wholesale real estate investing technique, you can pocket the difference between what you would have paid for the property and the amount you’re able to get another buyer to pay.

The wholesale real estate market is larger than you might think because millions of homeowners are stuck in homes they can’t afford. Rather than go through the foreclosure process and suffer the pain and embarrassment of being forced from their homes, many homeowners are motivated to sell before their lender takes action.

A good way of ensuring that you can assign a wholesale real estate contract before you sign on the dotted line is by lining up a few real estate investors that are interested in buying wholesale real estate. They’ll gladly tell you the types of properties that they are seeking – and how large a profit they want to make on each deal. Then all you’ll need to do is find properties that meet their parameters. You can use the money you earn from wholesale real estate investing to supplement your income, build your business, or provide additional funds for your own investing activities.