What Is Wholesaling?

Hey, if you’re unsure exactly what “wholesaling real estate” really is, here’s a quick explanation…

In its simplest form wholesaling is controlling an asset at a noteworthy discount (a “wholesale” price) and then re-selling it (usually as-is) for a tidy profit to either an investor or end-user.

The key is having “equitable interest” in the property, which you typically gain by simply having it under contract to purchase. Once you’ve done this, you have the right to market and sell that contract, so long as you don’t actually “sell” before you actually “buy”.

Usually wholesalers either (i) simply assign their contract to the new end-buyer, step aside and collect an “assignment fee” at closing, or (ii) they may do a “double closing” instead, in which both transactions are closed on the same day, and they collect the spread in the middle as their profit.

This is wholesaling in its simplest, most straight-forward form and it’s already an extremely powerful concept all by itself – hands-down the best way for most newer investors to get started in the business, and many of us make a full-blown business out of it 🙂

Happy Wholesaling!

justin

 

 

 

 

Justin Wilmot
Investor – Educator – Entrepreneur