Buying and selling property at wholesale prices has become more popular than ever recently and will continue to do so in the future. It can be a very profitable endeavor for all involved. Click here for our article on Wholesale Properties

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Investing in wholesale real estate is catching on fast. If you’re not sure how it works, read on. Let’s assume you are the wholesaler. Your objective is to find a seller and a buyer, and you make the profit. It’s no different to buying and selling any item. The same concept applies, only the commodity you are selling is property.

You have to find a property that is not in good condition – a property that won’t be of interest to the average buyer. The seller must be desperate to sell because he or she wants to get rid of this noose as quickly as possible. This desperation is the key to your success. The scheme will not work if your seller is in no hurry to sell.

Your next step is to calculate how much the property will be worth once it has been fixed up. Then you negotiate a price with the seller, bearing in mind how much the repairs will cost. Use the seller’s eagerness to your advantage. Try your best to get the property for as low a price as possible. The lower the price, the more you will make on the deal.

When you and the seller have agreed on a price, sign an intention to purchase contract and have the property locked so that no-one else can buy it. Now you need to find your buyer. The buyer must be a ‘flipper’. A flipper is the term used in the real estate business to describe someone who buys a derelict property, fixes it up and then sells it as fast as possible. This is known as flipping.

People who have been in the wholesale real estate business for some time will have a network of flippers. So it’s easy for them to spread the word and make a quick sale. If you’re starting out at this game, you will slowly but surely build up your own group of flippers.

A flipper always has cash on hand so the deal will not involve any mortgage on the property. You and the flipper will agree on a wholesale fee to be paid to you. Then you introduce the flipper to the seller and the deal will be concluded between the two at the pre-agreed price. When the sale has gone through you will be paid for your efforts.

So, how much can you earn on each deal? Well, as no two properties are the same, your potential earnings will vary. The wholesale fee is in the thousands, not in the hundreds, so you’re looking at big bucks. Depending on the property you can expect to make between $5,000 and $20,000 on each deal.

If you are just starting out as a real estate investor, you should consider going to this link–> wholesale real estate. What you will find there are 4 free marketing systems that will find wholesale real estate deals from motivated sellers for you.

I just sat down with a very successful real estate investor who specializes in wholesaling houses in Columbus, Ohio. His name is Darren Dicke and he shared with me an amazingly effective yet simple strategy about how he locates and sells wholesale deals and I thought I would share it with you so you can start using the idea immediately. He calls this strategy “Driving for Dollars” and this is how it works.
Darren simply gets in his car and drives around Columbus looking for homes with “For Rent” signs in the front yard. When he see one, he pulls over, gets out his cell phone and calls the number on the sign, and asks the owner (the landlord) these 4 important questions:
1. “I’m calling about the house you have for rent (say address). I was curious if you would you be interested in selling it to me?” (If the answer is “no”, he then asks…) 2. “Well do you have any other houses you would consider selling to me?” (If “no”, he then asks…) 3. “Do you know anyone else who owns a house in this area that may be interested in selling?” (If this is also “no”, he asks…) 4. “Are you interested in building your personal portfolio beyond what you currently own? I actually buy houses in and around here and would be happy to let you know when I have a house that is available for sale.”
You would be shocked to learn that just about half of all the deals that Darren works on is a result of this little technique. The first 3 questions get him seller leads, and the fourth adds to his buyers list (the landlord buyers). If any of the first 3 questions are answered with a “yes”, then he treats it like a typical seller lead. While he explained this strategy, I realized that you could also use this idea for houses you see advertised on Craigslist.com, in your area’s newspaper, and even in publications like the local Thrifty Nickel and Greensheet papers.
So that’s all there is to it! Just contact landlords with “for rent” signs and ask them these 4 questions. You will eventually find some motivated sellers (burned-out landlords) and great qualified landlord buyers (for all your deals) that could turn into a nice stream of income for you.

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With foreclosures exploding across America, many people are
dealing with the fact that they bought a house they just
couldn’t afford to own. Few things are worse than losing your
home. Its a nightmare. The banks are also stressing. They have
to remove these houses off their books ASAP. If they don’t,
they pay for the foreclosure process, opening costs and
attorney’s fees and everything associated with the foreclosure.
Foreclosing is not fun for banks or homeowners.

Enter the short sale real estate investor. Short sales arent
easy as any investor will tell you. But today I want to show
you a little tip on how to cash in on short sales that would
usually be passed over by the banks. And believe me this
happens a lot. Its a little know concept known as the “Deed
in Lieu.” What few investors realize is that many banks will
actually take the deed for a house as a settlement for
what the borrower owes on that house. Banks will frequently
accept the deed so they won’t have to pay for the foreclosure
process and attorney’s fees and opening costs etc. (You can
usually make $1000-3500 per deal using the “Deed in Lieu”!)

So what does that mean for you as an investor? It means that
you can make money on EVERY short sale deal that comes across
your desk when you understand how this process works. (Even
the deals that other investors would pass up as being a waste
of their time and energy.) You will know something they dont.
Its a total win/win scenario because if its a great deal, you
make ton of money on the short sale. If its not, then you can
most likely get at least $1000-$3500 per deal. Few people know
of this fact of short sale investing and those that educate
themselves will have many more deals paying off for them.

For more real estate investing tips, go here

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Get 7 free PROVEN direct mail marketing systems that can bring you more real estate deals by clicking here now!