Real Estate Wholesaling for Beginners with NO MONEY [My 1st Deal Explained]
Real estate wholesaling can be a great way to start investing in real estate without a lot of money. Wholesaling involves finding distressed or undervalued properties, putting them under contract, and then assigning that contract to another investor for a fee. Here’s a basic overview of how to get started with real estate wholesaling:
- Find a distressed or undervalued property: The first step is to find a property that is distressed or undervalued. You can do this by driving around neighborhoods and looking for properties that are in disrepair, talking to real estate agents, or using online resources like Zillow or Redfin.
- Negotiate a deal: Once you’ve found a property that you’re interested in, negotiate a deal with the owner. This can be tricky, as you’ll want to get the property at a low enough price so that you can make a profit when you assign the contract to another investor.
- Put the property under contract: Once you’ve negotiated a deal, you’ll need to put the property under contract. This means that you’ll sign a contract with the owner that gives you the right to buy the property within a certain timeframe.
- Find a buyer: Your next step is to find a buyer who is willing to pay more for the property than you’ve agreed to pay the owner. This is how you’ll make a profit. You can find buyers by networking with other investors, advertising online, or using a real estate wholesaling website.
- Assign the contract: Once you’ve found a buyer, you’ll assign the contract to them. This means that you’ll transfer your right to buy the property to the buyer in exchange for a fee. The fee is typically a percentage of the sale price.
- Close the deal: Once the buyer has taken over the contract, they’ll close the deal with the owner and take ownership of the property.
Here’s an example of how a real estate wholesaling deal might work:
Let’s say you find a property that is in disrepair and the owner is motivated to sell. You negotiate a deal to buy the property for $50,000. You then put the property under contract, giving you the right to buy the property within 30 days.
Next, you find a buyer who is interested in the property and is willing to pay $60,000 for it. You assign the contract to the buyer for a fee of $10,000 (which is 10% of the sale price). The buyer takes over the contract and closes the deal with the owner, paying $50,000 for the property and giving you your fee of $10,000.
Real estate wholesaling can be a great way to start investing in real estate without a lot of money, but it’s important to do your due diligence and make sure you understand the risks involved. You’ll need to be able to negotiate deals, find buyers, and manage the paperwork involved in the transaction. With some hard work and persistence, however, you can build a successful real estate wholesaling business.