Can someone break this down for me?

Question

I want to learn about wholesales what is a brief summary to help me understand better.

Nathan Grabau · Answer

As a buyer, you get (most often off market) deals under contract, write the contract so you can reassign the right to buy to someone else, you let a new buyer take over the contract as the buyer, and they pay you a finders fee depending on how good of a deal you got on the property.

Bryant Brislin · Answer

It's like day trading real estate.  There's a lot of work that goes into it, and it's not for a hobbyist who only has a handful of hours a week to put into it.

Bob S. · Answer

Find a deal, find a buyer, flip the contract. But do not even start looking yet. Connect with someone doing deals, learn than apply what you learn.

Good Luck

Jerryll Noorden · Answer

Most serious investors are good at what they do.. flipping, and collecting houses for their portfolio, but are horrible in marketing, and finding deals.

They either have no time or simply are nimkampoops when it comes to finding great off-market deals.

There is where a wholesaler comes in.

A (good) whoelsaler, will find off market deals, negotiate a price ideally that is a win for the sellers, the back end buyers (investors) with enough spread left for the wholesaler to make some money too.

So let's say you find a motivated seller, and the AS IS value of the house is $100K.

THe After repair value of the house could be $200K, and it needs $30K in repairs.

If you offered $101K to the seller ($1K over as-is value), the seller can't complain, right? It is a more than fair price.

You take $4K for your "finders fee", thus selling the contract for $105K ($101K+$4K=$105K), the buyer can still make a profit by putting in $30K for repairs and selling it for $200K

So everyone wins.

Sadly, these numbers rarely play off like this. But yes, that would be wholesaling in a nutshell.

Can someone break this down for me?

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