Real Estate Newbies -Wholesaling/Best Choice

Real Estate Investing Tool That’s Best Choice for Newbies

Wholesale real estate investing is one of the newest and hottest trends in real estate investing, and in my opinion- one of the best RE investing tools/strategies for newbies to get into. It combines the profit potential of house flipping with none of the financial risk. You don’t need lots of money and you don’t need sterling credit. You do need ambition and the ability to work hard, and if you can do that, you can be successful at wholesale real estate investing, newbie or not.

Of course, the obvious first question is what the heck is wholesale real estate investing? Most people have never heard of it, so don’t feel bad if you haven’t. What you’re doing, basically, is acting as a real estate wholesaler.

If you were running a grocery store, you wouldn’t buy your food directly from the farmer. Instead, the farmers sell their food to a wholesaler, who then sells them to grocery stores. The farmers benefit from not having to search for buyers for their food, and the stores benefit from not having to look for people to buy food from. The wholesaler charges a small fee for making that connection. It’s like matchmaking!

Likewise, in real estate there are plenty of people with houses they don’t want and would love to get rid of. There are also plenty of people who buy houses in order to fix them up and sell them for a profit. What neither of these people really wants to do is look for the other person, which is where you come in. Match made in profit heaven!

What you’re doing as a wholesale real estate investor is finding those distressed houses that are an anchor around their necks and making the seller an offer. You then find a flipper/rehabber that is looking to buy houses to fix and present them with the offer plus your fee. They then buy the house, pay you, and everyone is happy.

Flipping houses often requires a chunk of money or the ability to take out fairly large loans. In either case, if you don’t know what you’re doing or if the current real estate market turns on you, then you’re at risk of losing a big chunk of cash.

With wholesale real estate investing, what you’re doing is contracting to buy and selling it to someone else for a nifty profit. If you don’t find a buyer for the house you’ve optioned, then you are only out a pretty nominal deposit amount. This is about as low risk as it gets when it comes to investing in real estate, which is what makes it perfect for newbies.

Need to make money quickly? Wholesale real estate property!

Karen