Could someone explain what Wholesaling is and Buy and Hold please. I thought I knew but I am not sure. Thank you in advance.
Wholesaling is selling a property to a middleman that might do something to it (rehabbing) before it's being sold to an end-buyer (retailing)
Buy-and-hold refers to someone buying a property to hold for rental. One that is not being sold right away
Thanks so much Michaela Graham I thought that is what they were but just wanted to be sure. So if I did Wholesaling how would I find the Middleman?
Actually, in wholesaling, you as the investor become the middleman. You contract from a seller, then sell to another buyer at an increased price, thus playing the middleman.
Finding the buyer: Many ways, pull all cash closing records from a title company. Anyone paying all cash for a property is likely an investor (but not always). Attending RE meetings and networking, networking here on BP, and the list goes on.
Search "building a buyers list" and find many threads on this topic.
So how do I contract from a seller. Sorry for all the questions just trying to learn and thanks for your help Will Barnard.
sorry, if I wasn't clear. Yes, you are a middle-man as well, but there's usually another investor, who you are selling to, who's also a middle man. That person will then sell to the end-buyer
Originally posted by Sandy Paris:
So how do I contract from a seller.
You can shop the MLS or direct market to motivated sellers. Find a deal, negotiate it, and write an offer. You can't contract anything without first making the offer. In that offer, it should have the ability to assign the contract or else you need to have some other means to sell it to your new buyer.
Ok thanks to both of you and I am attending my first REI meeting Sunday night and I am so excited about it.
Hey @Sandy Paris welcome to the site! Here's a couple articles you might enjoy:
See you around the site!
Welcome to BP! Will explains it pretty well.
Each person has certain skills. A wholesaler is skillful at Marketing and Negotiating a deal, once they get that deal under contract, they will "Wholesale" it to a person that may want to "Flip" that house which means they will do all of the work to bring that property to Fair Market Value with all of the repairs complete. That investor could "Flip" it and make a profit, or if they choose, they could become a "Landlord" by having tenants and collecting monthly income.
BP is great to bring these people together!
Look forward to hearing about your success!
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