I’m trying to make extra money by wholesaling houses or even land. So how exactly do I do it?
Let’s say I found the distressed property that’s not on Zillow or anywhere. I get the owners information and we get a deal going. Houses nearby are going for $300k. Let’s say I can get this one for $150k but needs $50k in repairs. I don’t want to do the repairs so I then find a buyer to renovate and buy it from me for $180k.
Now how exactly do I purchase the home and how do I sell it? Do I have to take out a mortgage? And what mortgage or what’ alternatives can I take.
Someone once told me that I don’t have to do anything because I’m not actually going to buy it?
I’m confused on the process.
Thank you guys/girls so much for the responds
Hey @Jerry Maggiore , great question man, I’m a newbie to this thing like you, I’m curious what professionals have to say about your question!
@Mark Anthony Alvear Jr thank you
@Jerry Maggiore I think the ideal of wholesale is that you get the property under contract, due your due diligence, pitch the property to other investors, and assign your interest in the purchase to the investor at closing. This is just a general summation. Just remember the deal has to be a deal to potential investors. Most noteably your repair estimate and ARV needs to be accurate.
Read, watch videos, and get some training.
I'm not trying to make light of your question, but it's a BIG question. Wholesaling is a business. You have to market to find properties. You have to be able to quickly assess a deal and make an offer when the opportunity arises. You need to be able to do your due diligence in inspecting and evaluating the property. You have to get in under contract. (This isn't exactly in order.) You have to present to your buyers. You have to execute the close.
Each one of those steps is way more than a message board post. So, watch the BP videos. Read books (I prefer audio books while I'm driving) Perhaps find a training class. I took one, and while it didn't give me 100%, it got pretty close.