Fort Worth Wholesale Property
The beautiful thing about being a real estate investor is that there are unlimited ways to make BIG cash all the time in any type of economy. Real Estate is one of those things that everybody needs. It is not quite water, but it is something that everybody needs. Even the homeless guy has established his piece of real estate under the bridge or in the alley, etc. So you can see how you can take advantage of this wonderful resource and make lots of money.
Creativity is the key to making lots of money in real estate. After all, we want to be able to make money no matter what, so we need to come up with many options to make this happen in any economy and environment. This is where I like to look at one of the easier techniques known as “wholesaling.” Wholesaling is the art of finding a seller who is in a bit of a state of emergency. The state of emergency or distress can be many different things. It can be foreclosure, divorce, death, military move, and there are many others out there. The challenge here is to find them, or in fact make them find you.
The basics of wholesaling are fairly simple. You simply find a good deal from a distressed seller who needs to get out of the home as soon as possible. When you find this deal, you have many options to choose from. You can rent it out and make a couple extra bucks a month, rehab the property and resell it, lease options, etc. You can also do what I like to do and wholesale the property. You simply get the rights to the property and sell it to another investor for a more than you have rights to the property for. This does a couple of things. This insures that you will be paid on the front end of the deal at the closing table and you do not have to do any of the rehab work on the property. The investor that you sold it to will be the one that is taking on that responsibility. So, you do not have to deal with any of the contractors involved or any rehab period, all you have to do is get your check at closing and move on to the next one.
Wholesaling is great and fun and some even call it addictive, however I will add this word of caution. Make sure you protect yourself in your deal. The last thing you want is to find a good deal, and show other investors and they go behind your back and cut you out of the deal. So make sure you protect yourself. Get out there and get those deals and make lots of money. Anybody can do this. The only thing stopping you is YOU!
Terry Burchett is known for his real estate savvy and has shown many people how to make loads of CASH in real estate. To find out more, check out his website at http://www.twholesaleproperties.com
Dallas Wholesale Properties
Admin, August 27th 2009 |
Tags: Cash, Deals, Foreclosure, Money, No Money Down, Real Estate Investing
Posted in Fort Worth Wholesale Property
Fort Worth Wholesale Property
Wholesaling Revealed
In this Lesson you learn the following:
Definition of wholesaling
The history of wholesaling
Why it is legal
How to do it with no cash or credit.
Definition
Wholesaling is a term that has been around for years. It is most commonly used when goods are traded such as groceries and other products sold at retail outlets. There are 3 parts to this. The original owner or producer of the goods would sell to the wholesaler, the wholesaler would find retail outlets to sell goods to at wholesale prices and retail stores then charge retail prices to their customers.
History
It has only been until the last few years that this term has been associated with real estate. The way that it works in real estate is that a wholesaler will market to find properties at a substantial discount. They would then turn to their buyers (an investor list they have created) and sell them the property for more than they paid. The wholesaler could make a few thousand to several thousand dollars. It is like being a broker that makes more money on the transaction and does not need a license.
Legal
“Is this legal you say? This sounds like flipping.” Call it what you want to it is completely legal. The only way it becomes and has become illegal is if you falsify information. Never overstate value or pay someone to overstate value, lie or advise for a buyer to lie on a mortgage application or hide details that could affect the value of the property. As long as you disclose everything and stay legal you will be fine.
Wholesaling with no Cash or Credit
This is the fun part. How do you get paid, especially if you do not have any money or credit? That is the easy part. You can do this a few ways.
The easiest and cleanest way is to assign the contract. You get a property under contract and sell the contract to another investor. If the property is worth $50,000 in as is condition and you have it under contract for $40,000 then ask for a $10,000 fee. It is illegal to get compensation if you are not licensed in a transaction unless your name is on the contract or you have a certain interest in the property. If your name is on the contract then you have an interest and you can do what you want with your interest.
The second way to do this is to become a bird dog. That means that you locate properties for other investors but they put the contract together. You just get a fee for introducing the buyer and seller. You can only receive a fee from the Buyer and not the Seller. Receiving it from the Seller is practicing Real Estate Sales without a license.
The way that I typically wholesale properties is to do a double closing. With this technique you put a property under contract. You then find a buyer that will write a contract with you as the seller. You then buy the property and sell the property on the same day typically 30 days after you contract with the original seller. The difference between your purchase and your sale less any expenses is your profit. There are tax advantages to doing it this way that you should consult with your accountant.
There is one other way to wholesale properties that is a little more risky and takes some money. The only reason that I like this method is that you can take your time a little more and maximize the value of the property. With this technique you actually close on the property, clean it up, maybe spend a thousand or two and resell it. I have done some of my best deals that way. I am making $30,000 next week on a deal that all I did was cleanup, some minor foundation work and had layers of wallpaper taken of the walls and painted. By spending a couple thousand dollars I was able to get at least $10,000 more for the property than if I had not done the minor cleanup and repairs. More risk equals more reward. I used this technique to do my best wholesale deal of $39,000 in just a few days of cleanup.
This article was written by Tony Javier. Tony has a very successful Real Estate Investing business. You can get his 90 Minute Telesminar on how to Wholesale Real Estate for free, go to
http://www.TotalRealEstateInvesting.com along with many other bonuses.
Dallas Wholesale Properties
Admin, August 26th 2009 |
Tags: Foreclosures, Invest, No Money Down, Real Estate, Real Estate Investing, Wholesaling Real Estate
Posted in Fort Worth Wholesale Property
