How To Make Money Wholesaling Houses

By Author: Simon Macharia
Total Articles: 7
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Flipping houses (also known as wholesaling houses) is the quickest method to make cash in real estate investing. It is also the business model that needs little to no money invested.

- You can cash out of the deal in just two to three weeks. - The profits may not be as big as other real estate investing business models, but you can generate a healthy income just by wholesaling houses. - You can easily generate $5000 to $10000 for each deal, with very little effort and work. - It is typical to close 3 to 5 deals monthly on a part-time basis.

- In general, it is necessary to find houses below market value, the flip them to buyers with cash, most other real estate investors.

- I do not rehab anything when wholesaling houses; this is the work of the real estate investor that I flip the deal to.

- To be successful as a real estate investor flipping houses, here are a few tips you must follow.

1) Get your deals at the right price
Most rehab real estate deals fall in the middle price range. - In my investing market, this is houses under $150,000. - Some lender require you buy within a pre-defined ...
... price range. - Going too low could mean buying in undesirable areas. - Going too high can limit the number of buyers you have. It is necessary to have high speed for successful wholesale real estate investing.

2) Avoid wrong neighborhoods
- Fairly-priced neighborhoods are most popular with most real estate investors. - Notwithstanding the fact that lower prices are always better, most real estate investors would rather buy where they can rent them out easily. As such, it is mandatory to target good neighborhoods to be successful as a wholesale real estate investor.

3) Estimate rehab costs fast and accurately
Repair estimate is a must when wholesaling houses. - Most require rehab, and you must consider this in the offer you make. - When buying wholesale houses, I buy below 65% of fair market value minus rehab costs. The lower my offer, the more my potential profits when I flip to other real estate investors.

4) Make good offers that leave a profit and that get accepted
- The most important part of real estate investing is making an offer. When flipping houses, you must make a profit and still leave a profit for the real estate investor buyer.

Obviously, as long as you know the estimated renovation costs and the after repair value after it is fixed up, you will be able to make an offer that both gets accepted and leaves enough cash on the table for both you and the wholesale real estate investor you flip the house to.

5) - Identify rehabbers with cash, mainly other real estate investors
- Once you have a contract to buy, you must get a wholesale buyer with cash who will fix it and sell, or hold it. - You must verify where the money is coming from before flipping your houses. - A line of credit or cash in the bank is always preferable. - This way, you flip your houses fast and avoid tight lending restrictions.

- Most importantly, they must produce a sizable non-refundable earnest money before I can sign a contract.

6) Cash out quickly
- With a ready source of cash, you can close your deals in 2-3 weeks including time for title work. - Speed and volume will them be easy to accomplish, hence making more profits.

For more information ..... Wholesaling houses | flipping houses