How to Wholesale Real Estate Step by Step and Get the Best Profits
The question of how to wholesale real estate step by step is one posed by many beginning investors. Because wholesale real estate is quicker and more straightforward than other forms of investment, it’s also very appealing. The following steps will show you a clear and detailed path to finding your first seller, managing all the tasks required for your purchase and sale agreement, and finding the ideal buyer to close the transaction and get a good profit.
1. Find a Seller and Get a Great Wholesale Deal
The first step when it comes to figuring out how to wholesale real estate step by step is to find your seller. You can use anything from internet marketing to direct mail and going door to door for this purpose. Ask friends or relatives whether they know someone who needs to sell their home fast and can’t rely on real estate agents for one reason or another. If you have a small amount of capital at your disposal, you can even set up your own website, promote it over social media, and find motivated sellers in your area.
2. Write Up the Real Estate Purchase and Sale Agreement
Once you find a motivated seller, the next step in the process of how to wholesale real estate step by step is to negotiate the deal and put it under contract. Make sure you negotiate the price low enough to give you plenty of room to include the transaction fees and your wholesale fee without hurting the end buyer’s profits. The purchase and sale agreement will have to be drafted in advance and signed by both parties. Once signed, take the contract to your title company, so that the title work can start. Title insurance and investigations are required to ensure no surprises arise at the last minute.
3. How to Find Your End Buyer for the Wholesale Deal
When it comes to knowing about how to wholesale real estate step by step, it is essential to find the right buyer and keep close track of the timing. The end buyer can be one of your investors on your buyer list, or even a friend, colleague or family member whom you know wants a good real estate property to invest in. If you don’t yet have a buyer list, look for REIA meetings and contact other wholesale real estate experts in your area to find out more about any interested local buyers and investors.
4. Strike Up a Contract and Get Your Real Estate Wholesale Profits
The end buyer is the last piece of the puzzle. Once you find a candidate, you have to agree on a purchase price. Next, draft an assignment agreement that legally transfers all the rights of the property to the buyer, and collect the deposit from the end buyer (which can be a few thousand dollars) as soon as the assignment is completed. After sending a copy of the agreement to your title company, all you have left to do is wait for the rest of the funds to be transferred, make sure the assignment fee is paid, and get your fair share. As you can see, it doesn’t take much to learn how to wholesale real estate step by step, and the process is far less complicated than other investment practices.