Wholesaling 101

Real estate wholesaling is simply finding a bargain property and passing it on to a bargain hunter. That bargain hunter will be an investor who will either purchase the property to resell it or purchase it to hold it for rental income.

Flipping is the most popular form of real estate wholesaling. Flipping means buying a property and quickly selling it for a profit. When you sign a contract to purchase a bank property, you can sell it to an investor for a fee. All you are doing is selling your contract for that house to another investor.

Flipping is as easy to do as it sounds. It is a great way to earn some immediate cash and not have to come up with a lot of money. In fact, the only money needed is a small deposit on your contract with the lender.

When you flip a contract to another investor, the investor is paying you to sign over all of the rights and privileges you have under your contract. The investor who is paying you a fee then has the right to purchase the property at the price that has been agreed upon in the contract.

You should ensure that your purchase contract has a clause that allows you to assign it to someone. Some sellers may not agree to this clause. You can overcome this by telling the seller that you are not sure in what name you would like to take title to the property. Tell the seller that you may take title to the property in your corporate name or your business partner’s name. You can make the seller feel more comfortable if you write into the contract that you have ten business days to decide the name in which you will take title. This will give you two full weeks to flip the property.