Do you buy the property when you wholesale?

Question

When you wholesale, do you buy the property and sell it or you just present it to the investor without buying it? How does wholesaling work?

Randall Alan · Answer

You put the property under contract with a normal contract that has the check box “assignable” checked. You then do an assignment document… A one page piece of paper that you turn into the title company that says I’m selling this property to buyer B, and when it sells please give me $10,000 or whatever your assignment fee is. You never owned the property as the wholesaler. The title company pays you off just like you were a mortgage on the property… it just gets written into the closing as an assignment fee.

Randy

Nick C. · Answer

Most just starting out assign the contract as Randall stated above. The institutional and experienced wholesalers double close = buy and sell the property on the same day. Doing it this way your end buyer won't know how much you're making on the deal until after closing.

Eliott Elias · Answer

You put the property under contract and assign that contract to an end buyer for a fee. No cost to you

Neil Rivera Llena · Answer

@Marjo Naci I agree with them. Wholesaling Real Estate is a Profitable strategy without buying the property. When you find a discounted property (Distressed Properties, low on market value) put that under contract, assign the contract to a potential buyer and add a clause to the contract that states you have the right to sell that contract to an end buyer with a fee like around 5-10% of the sale,I suggest checking PREIA (Pensacola Real Estate Investors Association) with lots of active members where you can learn more about the market.

I wish you luck in your future endeavors bro.

Do you buy the property when you wholesale?

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