How to Find Properties to Wholesale

Wholesaling houses is a great way to get started in the real estate business. It can give you many opportunities to earn profits with no money, no credit, and no risks. Sounds impossible? Then read on.

In the real estate business, the term “wholesaling” refers to the act of placing a property under contract and then assigning that contract to an end buyer, who will close the transaction. In a nutshell, the main task of a wholesaler is to find low-cost properties and then sell them to bargain hunters.

A wholesaler usually earns an average of $5,000 to $15,000 per transaction. Sometimes, the figure can go as low as $3,000 or as high as $20,000. A good way to rake in huge profits is to wholesale several properties at once so you can collect at least $10,000 a month.

The reason why many real estate investors consider wholesaling houses as a “no risk” method of investing in real estate is because you don’t need a huge amount of money to get started in this business. Because you’re not technically buying the properties that you are going to wholesale, you won’t need an investment capital. Securing a bank loan is also unnecessary, thus, you won’t face huge risks at all.

To wholesale properties, the first thing you should do is to find properties. You can do this through the tried and tested method of using advertisements. Running ads on the newspapers and online can help you attract the attention of motivated home sellers. Using posters and flyers are good marketing strategies, too. You can also check out the Internet because some sellers post advertisements online.

Although putting up bandit signs when wholesaling houses is considered against the law in some cities and states, it is one of the most effective ways to find a good source of properties. According to veteran wholesalers, such a marketing strategy can get your phone ringing off the hook. However, you have to be careful and you must remove the signs immediately to avoid trouble with the local authorities.

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