Wholesale real estate investment tips for beginners
Wholesale real estate investment has been on the rise lately. The name itself - wholesaling, sounds very confusing. Based on the definition of wholesale, it creates the impression that real estate agents buy large quantities of property and sell them at lower rates. Well, it’s not. Let’s take a look at an example by Investopedia that explains real estate wholesaling : “Let's say a homeowner has a property he never thought he could sell because it's fairly distressed. The owner may not have enough resources to fix it up himself but continues to live in it, thinking he'd never get a fair price for it. Enter the wholesaler, who approaches the homeowner with an offer. Together, they agree to put the house under contract for $90,000. Using his network of investors, he finds an eager buyer at $100,000. He assigns the contract to this investor, who then has a profitable fixer-upper project. The wholesaler makes a $10,000 profit without ever owning the home.” Real estate wholesal...