Wholesale real estate definition

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Wholesale Real Estate involves distressed properties and aims to generate profit, similar to flipping houses. However, the processes differ significantly.

  1. Understanding the Local Market

Familiarize yourself with the local market and real estate wholesaling laws in your area before proceeding with any deal.

  1. Property Identification

Find properties below market value through methods like MLS, foreclosure lists, real estate auction sites, and direct mail campaigns.

  1. Due Diligence

Ensure the deal makes financial sense by calculating fair market value, necessary repairs, and after-repair value (ARV).

  1. Engaging the Seller

Explain your role as a real estate wholesaler and the benefits of working with you to the seller.

  1. Securing the Contract

Present your offer and secure the property under contract, with a contingency clause to withdraw if an end buyer cannot be found.

  1. Finding a Cash Buyer

Market the property and search for a cash buyer using real estate agents and social media.

  1. Contract Reassignment to the Buyer

Reassign the contract to a suitable cash buyer, ensuring all terms are agreed upon and including your wholesale fee.

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