What is Wholesale Real Estate?

hello their friend Jerry Norton here and
today we’re going to talk about exactly what is wholesale real estate alright guys welcome and I am really
excited about what we’re gonna talk about today it’s beautiful outside here
at home so we’re actually gonna film outside right now and I wanted to take a
minute on this video and talk to you about a question that’s asked to me very
very often which is what is wholesale real estate what exactly is that you
know a lot of people love the idea of making money with real estate and on
this channel it’s all about how to gain freedom by using real estate as a means
to do that freedom financial freedom time freedom that’s everything we talk
about on this channel and so the fastest way I believe in one of the best ways to
achieve financial freedom very quickly in real estate is by doing a strategy
called wholesaling now wholesaling think think the opposite of like buy and hold
rental property it’s not a long-term strategy it’s a really short term
strategy and the basic idea is you get in and you get out of a deal very very
quickly sometimes the same day and you make some money okay now what’s cool
about wholesale real estate is we’re not actually dealing with the house we’re
actually dealing with paperwork so you know we tend to think in terms of like
an asset with real estate we think of the house a tangible thing right well
that’s not the case with wholesaling here’s how it works
you’re basically going to get a contract to purchase a property from a seller we
call them a motivated seller it’s somebody that’s really needs to sell
their real estate there’s a hardship going on there’s some kind of stress
about it either financially or maybe the properties in in a lot of disrepair and
they just want to get rid of that headache they want to they want to
alleviate that burden that that property is causing them right now what they do
then is they’re willing to sell it to an investor as is so meaning no repairs are
needed nothing else needs done they can just sell that property be done with it
and that’s what they’re looking for an investor who can step in and solve that
big problem for them so then as a wholesaler what you do is you get a
contract with that motivated seller right that piece of paper that says the
seller agrees to sell it at this price you agree to buy it at that price and
now you have that contract well that contract that paper has value now
because another investor who’s looking for deals would love that deal
they would step right into your shoes and they would take that deal so then
what you do is you take your paper your contract that has value and you flip it
to that other cash investor that other investor that wants that property so you
assign it we call it as it’s called an assignment or you flip your contract to
them they then step into your shoes they’re now the buyer they now go to the
closing with the seller they fund it with the cash their money not your money
their money they buy that property and they pay you a fee for the right to then
buy your contract that makes sense so they’ll pay you $5,000 all the way up to
$25,000 you know just kind of depends every deal is a little different but
that’s typically what you can look at five to twenty five thousand dollars
that’s the value of that contract you have if you’ve got a good deal okay the
key is getting a good deal and once you have that deal you can then flip your
contract so the thing that’s important to know is that there are motivated
sellers all around you right in your backyard in every market in the US and
there’s also cash investor buyers that are looking for deals
so by acting as the middleman you can wholesale real estate and make a lot of
money so listen when I first got started that’s what I did I
I started in Detroit I was flipping junker houses for you know like five and
ten thousand dollars I’d get a contract and I had to sign my contract to another
investor and make five or ten thousand dollars and I would repeat it I do
several of those every single month it allowed me to get out of my construction
job at minimum wage and become financially free all right we’ll talk to
you next time

5 comments on “What is Wholesale Real Estate?

  1. hey jerry, If I find a property, get the P&S agreement signed by the seller, then is the property locked up that no one else can come in and try to negotiate for that house? And if you say that it is locked up, then how is that possible because we haven't gone to get that P&S agreement recorded with the title company. Or should we give it to the title company which is what locks it up? When and how do we open escrow and is that what actually locks it up?

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