The goal in real estate wholesaling is to sell the home quickly and efficiently saving the seller stress & time, and for most "time is money."

 

Real estate wholesaling occurs when a party (the "wholeseller") contracts with a home seller (motivated person skilled in unconventional marketing), that home seller markets the home to potential buyers, and then assigns the contract to one of them. The wholesaler makes a profit which is the difference between the contracted price with the seller and the amount paid by the buyer.

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A typical wholesaling scenario looks like this: A property owner needs to liquidate his/her real estate quickly because of an unforeseen circumstance such as divorce, loss of job, death, or illness. They stick a "FSBO" (For Sale By Owner) sign in the front yard. The wholesaler finds this house and puts the house under contract with the home owner or seller agent for an agreed upon price, say $90,000. This house is estimated to need $20,000 in repairs but will sell for $150,000 once the repairs are made. Using his network of investors and his upstanding reputation for getting the numbers accurate, the work completed, and knowing the market, the wholesaler finds an eager buyer anywhere in the country who buys this house at $100,000. He assigns the contract to this investor who gladly pays the mark up for bringing a good deal to the table.  The investor then has a profitable fixer-upper project and is able to force up the equity through rehab given the good neighborhood. The wholesaler makes a $10,000 gross profit (before taxes and marketing expenses) by reassigning his/her contract. 

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Let us help you sell your property quickly and efficiently by clicking the button below "Sell Your Property." If you are an investor please visit our available properties or feel free to make an offer. 

Read more: What is the goal of real estate wholesaling? | Investopedia https://www.investopedia.com/ask/answers/100214/what-goal-real-estate-wholesaling.asp#ixzz5AtSXsFzb