Are you ready to get involved in real estate investing?
Real estate wholesaling can be a very valuable tool when it comes to growing your new real estate investing business (and yes, you should approach it as a business!) Wholesaling allows you to generate capital which can then be re-invested.
Property wholesaling is fairly straightforward. You, as the wholesaler, seek out individuals who are seeking to sell their home.
Typically, the homes involved in real estate wholesaling transactions are distressed properties. A distressed property is a piece of real estate that is in dire need of repairs and upgrades or the homeowner may be seriously behind on their mortgage, facing imminent foreclosure if they fail to take action and sell the property. In this way, wholesaling is beneficial to everyone involved, as you’re helping to connect a property owner who needs to sell the property with an investor and rehabber who needs a property to renovate, repair and sell for a profit.
Once you’ve found an individual who is ready to sell their home, the wholesaler will put down a sum of money to secure the sale contract on the property. Then, the wholesaler will assign the property to another investor, who will actually buy the property off the owner. Then, the investor typically performs a “fix and flip”, whereby they perform major upgrades, renovations and repairs to boost the property value and increase the property’s salability.
The best part about real estate wholesaling is that you, as the wholesaler, don’t need to put down a large sum of money on a property. Some properties require a very small deposit to secure the contract, which is then passed off to a rehabber who will oversee the property upgrades and repairs. This makes wholesaling beneficial for individuals who want to get involved in real estate investing and need a method to raise capital that they can turn around and re-invest.
The key to successful real estate wholesaling is to move the property quickly once you secure a contract and assign it promptly to a rehabber/investor. This ensures that the transaction proceeds.
In the end of the day, wholesaling is a win-win-win, as the property owner gets to sell the property in an expedient manner, the wholesaler gets a cut of the profits and the rehabber/investor profits as well.
If you’re seeking to get involved in real estate wholesaling and investing in the Chicago area or beyond, or wish to sell a distressed property, contact Greg Teele, CEO and founder of Teele Enterprises Inc. Call 224.343.6890.