Wholesaling properties is an excellent opportunity if you want to make money in real estate but can’t fathom the idea of saving up all that money and dealing with the purchase process or have limited capital or credit. Real estate wholesaling requires determination and a bit of specialized knowledge, but it is amongst the most tried and successful methods for generating cash rapidly. 

Just like any other business, there are numerous methods to go about wholesaling, but its core is relatively simple. It is not as easy as it seems. It can be tricky to look for a property and come with a hefty price tag. Also, there’s the issue of getting financing, coming up with a down payment, completing all the paperwork, and then closing. Nonetheless, real estate wholesaling is a legal strategy you can use to your advantage without necessarily making an offer to buy or putting a down payment. Yes, you read that right!

Read on to know more about real estate wholesaling and how it works.

What is Real Estate Wholesaling?

Real estate wholesaling occurs when a property is available for purchase for less than it’s market value or worth. Wholesaling real estate is the process whereby an individual, the ‘wholesaler’, gets a contract from the seller of the property and assigns it to an end buyer who makes a significant profit when they resell it or keep it in their portfolio as a rental property. The goal here is to sell the property to an interested buyer before the contract with the original seller closes. Wholesaling is considered as one of the best short-term business strategy used by investors to make big profits. 

It is important to note that, in real estate wholesaling, no money exchanges hands not at least until the wholesaler finds a suitable buyer. You are probably asking yourself how the wholesaler makes money. Don’t worry I’ll walk you through. Let’s take a deep dive, shall we?