Understanding the concept from the inside out is the first step in learning how to wholesale real estate step by step. However, investors must understand what it is and when it should be used. To be clear, wholesaling usually has nothing to do with purchasing a physical property. Instead, investors obtain the right to purchase a property through a contract and then sell their rights to purchase the property to an end buyer. That is a critical distinction to make. In most states, the investor’s intent during a wholesale transaction is to never actually buy the property; instead, they negotiate for the right to buy the property. If your state requires the wholesaler to actually purchase the property, transactional funding can be used. Wholesalers make money when they sell their buying rights to an end buyer.
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