BiggerPockets

Everyone keeps telling me that I need to start with wholesaling before I get myself in too deep since I am still a newbie.

Without making fun of me, what is wholesaling? Or can someone help me find a link with this topic already open because I cannot find it though it must exist, lol.

I heard about people who opt out of their contracts because they had to close the deal. How long do these contracts exist for? I.E, how much time would I have to find a buyer for the property before I have to exit the contract / close the property (which most likely I won't be able to do since I do not have enough money lol)?

Please don't take offense, but the experienced posters on this site prefer to answer specific questions rather than the sort of generic questions you asked. Rather than ask that type of generic question, dig in and read the posts from the forum that was already identified above - and then ask your specific questions regarding a topic you have trouble with. There are no "dumb" questions, but we first expect that you perform a bit of your own research and learn as you read, since most questions posted on this site seem to be repetitive and hence already have been answered more than once.

Thank you Tom!

For a new investor I would like to add the following factors:

The Benefits of Wholesaling

1 You don't need any money to buy the property because, in effect, you're not actually buying it. You're buying the contract and then re-selling it. Many times, your name won't even be on the property title unless you choose to double-close it

2 You don't need a good credit rating because, again, you're not buying the property. In the "regular" real estate market, you won't get anywhere without good-to-excellent credit because lenders don't like risk. Wholesaling has no such barrier. It doesn't matter what your credit rating is; you can dive in and start making money using only your brain and hard work.

3
There's minimal risk because you're selling paper or a contract, not the property itself.

4
There are no holding costs. You don't have to pay mortgages or do any maintenance. You can buy "as is" and sell "as is."
5
The condition of the house doesn't matter. Wholesaling is all about price.
You have the ability to make money quickly (closing on a property between 14 to 30 days).

6
There is an abundant supply of wholesale properties and not as many investors going after them (compared to other real estate strategies).

As a follow up question, when the term under contract is used, are we basically saying you can enter into a written contract with an expiration day. in other words, could my contract have stipulations such as subject to approval of business partener, or null and void after XXXX date? In this case, I would basically be holding the house and trying to get deal with an investor? If I can not close a deal with an investor, I do not want to personally move to closing on the property so I could in theory exit the contract.