HUD Articles
Investor Series – What is Wholesaling?
January 15, 2022
This is one of many articles we will be writing regarding investing in Real Estate. Today we’ll be discussing a relatively new concept in Real Estate: Wholesaling
The concept of wholesaling is simply to find a seller who is willing to sell at below market rates and get that property under control via a purchase agreement. Then, find an investor who would like to acquire that same property at a higher price than you agreed to pay the original seller. You assign your interest in the agreement for the difference.
For example, you find a seller willing to sell his vacant home that needs work for $50,000. You then agree to pay this amount with a caveat that you can assign your interest. You then market the home to investors for an asking price of $65,000. You find an investor that is willing to pay this amount. You simply collect $15,000 from the investor and then assign your interest in the agreement to him. He then closes with the original seller later for $50,000. The investor pays $65,000 total for the house ($15,000 to you and $50,000 to the seller). You make $15,000 in the deal and never have to buy anything.