Wholesaling Real Estate Properties: How Does it Work?

Wholesale Real Estate: How Does it Work?Kenneth LeeLandhouseLeaders.com

What is Wholesaling?Wholesaling better known as flipping is one of the most common forms of real estate investing. With wholesaling you can easily make a couple thousand in a matter of weeks – but don't get me wrong, wholesaling is not and never an easy task. It is possible to make money from wholesaling but it will take a great deal of effort especially when it comes to finding the right property, negotiating a good deal and finding a buyer.

Finding the Right PropertyThe first step in a successful wholesaling venture is finding the right property. It is essential to factor in the basics when weighing the value and potential of a property. Make sure that it's situated in a good location, which means it should be near commercial establishments, schools, offices and business districts.

Effective NegotiationsAfter you've found the right property, your negotiation skills will then play an important role. In real estate investing, you make money when you buy not when you sell. When negotiating for the price of a property, make sure that you will have a substantial profit margin after everything's been said and done. Keep in mind, you will still be negotiating with buyers. A good rule of thumb is to have at least, a difference of $15,000-30,000 (depending on the value of the property) between your acquisition price and your expected selling price.

Marketing the PropertyOnce you acquire the property (presumably through a note/financing), you will then be marketing it (postcards, Internet etc.) to potential buyers. When you find potential buyers, negotiation will again take place and now you have to factor in the cost of marketing and other incidental expenses.

It's going to take some time, usually 1-3 months, before you find a buyer but if you know what you're doing, you'll eventually profit from the venture

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