The Wholesaling Process

• Find Motivated Sellers: The first step in real estate wholesaling is to find properties that can be acquired at a significant discount. Motivated sellers can include people facing foreclosure, divorces, or those with distressed properties. Wholesalers can find these opportunities through various channels, including online listings, direct mail marketing, and networking.

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• Negotiate Contracts: After identifying a potential deal, wholesalers negotiate a contract with the seller, often using a Purchase and Sale Agreement or Assignment of Contract. It’s crucial to secure properties at a price that leaves room for profit when selling to investors.

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• Build an Investor Network:

•  Wholesalers establish relationships with real estate investors, including rehabbers, landlords, and flippers, who are willing to purchase properties quickly. An extensive network can help ensure a fast turnaround on deals.

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• Market the Deal: Wholesalers then market the property to their network of investors. This typically involves creating a deal package with property details, photos, and the sale price. Email marketing, social media, and local real estate meetings are common ways to reach potential buyers.

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• Assign the Contract: When an investor expresses interest in the property, the wholesaler assigns the contract to them for a fee. This fee is typically a percentage of the sale price and can vary depending on the deal and market conditions.

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• Close the Deal: 

• The investor closes on the property, and the wholesaler collects their fee, often through an escrow service.