How to Start Wholesaling
How to start wholesaling. According to Than Merrill of FortuneBuilders, “Wholesaling real estate is one of the best ways to break into the real estate investing industry, so it pays to have an idea of what you are doing from the start.”
- Real estate wholesaling has become synonymous with today’s greatest entry-level business strategies.
- Due, in large part, to its relatively risk-averse nature, most entrepreneurs will use wholesaling real estate strategies as a stepping stone towards more complex exit strategies.
What is Wholesaling?
Wholesaling is an exit strategy where investors find a discounted property, get it under contract, and then sell it to an interested buyer for a profit. This strategy has become synonymous with today’s quickest method of turning a profit, with some investors wholesaling properties in as little as a few hours.
How to Start Wholesaling
You can find discounted property by looking for homeowners who want to sell their fast.
- Debt – Financial challenges are the primary motivators for deciding to sell a home quickly. If you have too many financial obligations and are facing a possible foreclosure or even bankruptcy, resolve the situation, so your credit rating doesn’t suffer more.
- Divorce – It is particularly stressful to go through a divorce. Once the property division is settled, you want to sell quickly and get on with your lives.
- Death in the family – When families live in separate states, it is hard to take care of the family home from another city, and travel is expensive. We can help. We can make a cash offer for the house, even while in probate.
- Downsizing – The house is just too big for the two of you, now that the kids are gone. You decide that you need something smaller. Maybe, you have a travel bug and don’t want to worry about the big house in the States. We can pay cash for houses, and you can be on your way to a smaller home or the Amalfi Coast of Italy.
The Doctrine of Equitable Conversion
When starting wholesaling, you aren’t actually selling the property itself; you are actually selling your right to buy that property to someone else. Under what is known as the doctrine of equitable conversion, the equitable conversion makes a buyer the equitable owner of title to the property at the time that they sign a contract binding them to purchase the land at a later date. The buyer is deemed the equitable owner after the contract is signed, but prior to the closing.
That means you don’t need capital when you are starting out. You just need to tie up the party for a short period of time to find a real estate investor. Thus, it is the easiest way to get into real estate.
FREE information on How to sell your house fast
Styl Properties, Inc. is here to help homeowners out of any distressed situation.
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. We offer the simple truth about your home and how we can help you sell it fast.
Give us a ring. We would love to help you understand the process and to answer all of your questions. You can reach us at 402 999.0577.
Photo by Adeolu Eletu on Unsplash