Great profit can be made in the real estate industry by practicing whole sale. This business is under the larger category of real estate investing.
The business of wholesaling is often referred to as 'flipping houses.' Real estate agents do not buy homes at market cost. Houses must be purchased bellow market value and after the necessary repairs have been made, the houses can be sold again as quality homes. Certainly a house might sell bellow average market cost if it is in an undesirable area, and in this case real estate agents must simply strive to make a profit.
First off, the real estate agent should try to purchase a home from a motivated seller. It is common that the sellers who are most motivated to sell are those that are having legal issues related to their property such as a divorce, uncared for property due to bad tenants who either neglected the structure or did not pay their rent, liens of property, or an inability to pay for land that was received through an inheritance.
Start the transaction by sending the potential sellers two post cards with a few weeks in between. Both a phone number and a URL address should be on the post card, but it is a good idea to make the URL larger and more eye catching than the telephone number so that the seller can be convinced through their own research of your web sight and company.
Once you receive a deal with desirable figures then make certain that it is prescreened and negotiated before you make up the contract. A contract that is used countrywide can be found online, making your job even simpler. The best contracts are those that are mandated by the state real estate commission, which makes both buyers and seller more comfortable.
The next step is the title work. Fax the signed contract to a title company. Your title company should make certain the house is purchased free of liens. A lien is the right to keep a person's property until a the debt on the property is paid off.
When all of these 'gathering' steps are taken care of then a buyer must be located. Best is to find a buyer who is willing and able to pay with actual cash. Dealing with real cash allows the transaction to happen quickly. It is not recommended that you deal with buyers who want to purchase through a bank loan as this adds additional hassle to the process. Often home purchasers are those who have recently sold a building and have cash on hand or credit to purchase with.
Last, the real estate agent must pass the money from one hand, through theirs, to another. This last step requires a contract to sell, and this also can be found from common sources. The real estate agent receives his or her money from the title company.
The business of wholesaling is often referred to as 'flipping houses.' Real estate agents do not buy homes at market cost. Houses must be purchased bellow market value and after the necessary repairs have been made, the houses can be sold again as quality homes. Certainly a house might sell bellow average market cost if it is in an undesirable area, and in this case real estate agents must simply strive to make a profit.
First off, the real estate agent should try to purchase a home from a motivated seller. It is common that the sellers who are most motivated to sell are those that are having legal issues related to their property such as a divorce, uncared for property due to bad tenants who either neglected the structure or did not pay their rent, liens of property, or an inability to pay for land that was received through an inheritance.
Start the transaction by sending the potential sellers two post cards with a few weeks in between. Both a phone number and a URL address should be on the post card, but it is a good idea to make the URL larger and more eye catching than the telephone number so that the seller can be convinced through their own research of your web sight and company.
Once you receive a deal with desirable figures then make certain that it is prescreened and negotiated before you make up the contract. A contract that is used countrywide can be found online, making your job even simpler. The best contracts are those that are mandated by the state real estate commission, which makes both buyers and seller more comfortable.
The next step is the title work. Fax the signed contract to a title company. Your title company should make certain the house is purchased free of liens. A lien is the right to keep a person's property until a the debt on the property is paid off.
When all of these 'gathering' steps are taken care of then a buyer must be located. Best is to find a buyer who is willing and able to pay with actual cash. Dealing with real cash allows the transaction to happen quickly. It is not recommended that you deal with buyers who want to purchase through a bank loan as this adds additional hassle to the process. Often home purchasers are those who have recently sold a building and have cash on hand or credit to purchase with.
Last, the real estate agent must pass the money from one hand, through theirs, to another. This last step requires a contract to sell, and this also can be found from common sources. The real estate agent receives his or her money from the title company.
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