Wholesaling in real estate is a total business in itself and brings forth super-fast cash profits, typically without ever acquiring the title on the property. It's not uncommon to pick up a check at closing, with the seller and buyer present at the same time. Real Estate investors have earned thousands of dollars within two or three days of finding a deal. And, yes you can use this money to put in on another deal.
Successful investors in the wholesale business are accomplished at locating good deals and marketing them. That's all there is in its simplicity.
Step 1: Find a deal.
Step 2: Lock that deal.
Step 3: Hand it over to someone else for a large fee.
You see, as the first one in "line" you are willing to take a smaller but faster profit and leave the larger profit to another investor with the time and money to buy, fix, and sit on the house until it's sold and/or rented out.
Follow these 3 tips for better wholesaling:
1. Don't pay too much.
Remember, you are still selling to bargain hunters. Leave them plenty of room to make a profit or you won't find a buyer. This may mean letting them net at least 20% of the sales price after all expenses.
2. Your only exit is to sell for all cash quickly.
Make certain your buyers can get the cash and aren't relying on bank financing. In other words, qualify your buyer. If a buyer can't close in 15 days or less, find another buyer.
3. Use an assignment of contract and let your closing agent collect your fee.
There's really not that much to learn about wholesaling. It's an easy simplistic real estate business. Just find a good deal with a major profit margin.