INVESTOR RESOURCES
WHOLESALING
The Ins and Outs of Real EstateWholesaling WHAT IT TAKES TO BE SUCCESSFUL IN THIS ENTRY TO REAL ESTATE INVESTING
by Grace Souiedan, Temple View Capital
f you’re familiar with the word “wholesale,” then you’re half-
Jenny sold her home quickly and pocketed $55,000, the investor bought a profitable fix and flip prop - erty for $60,000, and the wholesaler pocketed the $5,000 difference as the wholesale fee. In a nutshell, this is what real estate wholesaling looks like in action. In short, think of the wholesaler as the middleman between seller and investor. Real estate wholesaling is a very short-term investing strate- gy, often with distressed or on-the- verge-of-foreclosure homes that owners are looking to sell quickly and effortlessly. What properties are ideal for real estate wholesalers? How do I find them? Since part of the appeal of real estate wholesaling is the low capital
requirements, wholesalers often look to properties that are already distressed, giving homeowners an incentive to sell their homes below market value. To be a successful wholesaler, you need to network, network, and network some more. The more industry contacts you have, the more meetings and events you attend, the more likely you are to not only discover properties, but have access to buyers, too. Organized meetings between local real estate professionals and inves- tors are opportune moments for new wholesalers looking to make connec- tions with agents, contractors, and appraisers. These meetings often result in e-blasts or newsletters going out to mailing lists, highlight- ing available properties for sale.
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way to understanding what real estate wholesaling is. A real estate wholesaler is someone who looks to buy a home directly from the own- er then turns around and sells it to an investor for a slightly higher cost, pocketing the difference as the wholesale fee. For example, let’s say Jenny is approached by a wholesaler who offers to buy her home for $55,000. She is looking to sell the proper- ty quickly and seamlessly, so she agrees. The wholesaler and Jenny sign a contract agreeing to the price and terms. The wholesaler then turns to a found investor who flips houses. The investor agrees that it’s a profitable property and proceeds to buy it for $60,000.
24 | think realty magazine :: october 2021
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