Real Estate Investing Strategies: How to Wholesale Homes for Quick Cash

Saturday, October 11, 2008

How to Wholesale Homes for Quick Cash

Wholesaling real estate properties is one of the most risk free real estate investing strategies. Wholesaling is simply finding a motivated seller of a property, negotiating the price of that property then placing the property under contract. You will then find a rehabber/investor and sell the contract on the property for quick cash. Here’s an example.

• Seller accepts $100K for property
• The property is worth $200K
• You sell the property for $110K
• You will make a profit of $10K

The key to wholesaling properties is marketing. You want your phone to be ringing with motivated sellers wanting you to purchase their home. The bottom line is the more motivated sellers you speak to, the more deals you make. So let me give you some basics on what you’ll need to get started.

• Toll free number
• Bandit signs
• Access to comps
• Assignment Contract
• Business cards/flyers
• Title company that does double closing

First, you can search google to locate a company offering toll free numbers for a reasonable price and you want to record a greeting detailing how you can help someone sell their properties. Second, place at least 25 bandit signs in specific areas in town where the homes are older. Older properties have more equity. Be sure to put your toll free number (not your local number) on your signs. Place the signs in high traffic areas. Be sure to put the bandit signs after 5PM on Fridays; this ensures them not being removed before Monday by the city’s code enforcement.

Third, work with a realtor on obtaining comps to wholesale homes. You also want to distribute your business cards and flyers. A great place to network is your local REI Club where you will be introduced to other investors, realtors and title companies in your community. Implementing this step will allow you to find buyers to purchase your properties. I can assure you that if you execute these simple steps you’ll discover how easy it is to wholesale homes for quick cash.

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