What is Wholesaling? Is it legal? Do I need to be licensed as a realtor to wholesale? What are the limitations? How Can I pay for the house?
These are ALL Legitimate wholesaling questions! I am here to help you past them. So let’s start at the top.
Answers To Wholesaling Questions You Need To Know
Wholesaling is the art of selling your interest in a property for a fee. That’s right, You are NOT selling the house itself. You are not acting as a realtor. You are solving problems for home sellers by putting the property under contract to purchase and then selling your contract to your network of investors and buyers.
Let’s dig a little deeper. When you put the property under contract to purchase, you now own an interest to purchase that property. This interest has VALUE! For example, If you have investors and market buyers looking to purchase property with certain criteria, and you are able to locate those properties and put them under contract at a discount, you can then sell that interest to your end buyer so they can then close on the property and own it. WIN WIN! The seller is very happy to be out of a property they no longer wanted and the buyer is into a property they were looking for at a great price. Your reward for bringing this value to both parties is a nice healthy check. Awesome!
Now that we know some answers wholesaling questions, we can cover the other misconceptions. Wholesaling is 100% LEGAL.. in all 50 states. You do NOT need to be licensed to wholesale property or invest in property in any other fashion.
Many new investors get caught up in these few questions. They also wonder what the limitations are on wholesaling. Here is my best answer to the limitations….
Wholesaling can even provide PASSIVE income over many years if structured correctly.
Last but not least, how do I pay for the property to flip it? Remember when I said you were selling your interest in your purchase of the property? Interest doesn’t cost anything! So when you “assign” that original contract between you and your seller to your end buyer, the end buyer pays your fee along with the original sale price so you don’t have to come out of pocket a single dime.
Tough to beat that! This is exactly how I closed my first deal with only $11 in my pocket.
Now get out there and start networking!
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