What Is Wholesale Real Estate? Wholesale real estate is a strategy in the real estate market where an investor, known as the wholesaler, secures a property under a contract and then sells that contract to a buyer, usually a real estate investor, at a higher price. The key to wholesaling is finding properties at a significant discount, often those that are distressed or in need of repairs, and then quickly finding a buyer willing to take on the property for a profit. Here’s how it works in simple steps: 1. Find a Property: The wholesaler looks for properties being sold at below-market value. These properties are often in need of repair or the owners are motivated to sell quickly. 2. Secure the Contract: The wholesaler negotiates a purchase agreement with the seller. This agreement gives the wholesaler the right to buy the property, typically including a clause that allows assigning the contract to another buyer. 3. Find a Buyer: The wholesaler then seeks out a real estate investor or buyer willing to purchase the property, often marketing it as a good investment opportunity. 4. Assign the Contract: The wholesaler assigns the purchase contract to the new buyer for a higher price than what was agreed with the original seller. The difference between the contracted price with the seller and the price paid by the new buyer is the wholesaler’s profit. 5. Close the Deal: The end buyer completes the purchase directly with the seller, and the wholesaler collects their fee from the transaction. Wholesaling can be a lucrative venture for those who can find undervalued properties and build a network of potential buyers. It requires minimal capital investment compared to traditional real estate investing, making it an attractive option for new investors. Learn From Us: offernst.com