5 Easy Steps to Wholesaling Houses

Wholesaling houses is considered as one of the easiest form of real estate investing. Also known as flipping houses, this is simply putting a property under contract to buy it and then finding a buyer for that property. You don’t have to purchase the property so you can start in this business with little or no capital at all. If you want to know how this works, here’s a simple five-step guide to wholesaling houses.

1. Find a property and put it under contract. There are many ways to do this. You can advertise your business and your contact number in local newspapers, through bandit signs, or on the Internet. Another old but still effective way is roaming around the area where you want to wholesale properties. Drive around and look for dilapidated properties – these are the easiest to wholesale today. One you’ve found the right house, place it under a contract using contracts from you local Board of Realtors and then pay an agreed amount to the seller. Again, this is just payment for putting the property under contract and not the price of that house.
2. Find a buyer. Next thing you need to do is advertise that property to a list of buyers you already made prior to finding the property. Where do you get buyers’ information? You the same advertisement for searching properties, except that you are now “selling houses.” You can also do this through the Internet. You can learn this technique through websites like REIwired.com.  When your buyers’ list is in place, send the information about the property you have under contract through fax or email. You can also contact them through phone.
3. Make a deal with your buyer. If your buyer is another wholesaler, you won’t have to do much computing to determine your assignment fee. If the property is for sale at $45,000, you can just set your assignment fee, or your payment for assigning the contract to another wholesaler, at say, $10,000. That’s how you earn from wholesaling houses.
4. Close the deal with the seller. You don’t have to do this on your own. Find a title company that you are comfortable working with. They will close the deal and take care of everything for you.
5. Cash your paycheck and repeat the process of flipping houses. Enjoy the fruit of your not-so-hard work. While you can spend all that money you earned, it is always advisable to use that in your next transaction. Repeat the process and you’re sure to make money from wholesaling houses over and over again.

Think wholesaling houses is easy enough? Visit REIwired.com today and learn how you can start building a fortune from this business today.