CHAPTER 5 A How-to Guide for Wholesaling For those of you who skipped Part 1, or who simply need a refresher, wholesaling involves an investor putting a contract on a property for below market value, then finding a buyer to buy the contract (called simultaneous closing ) for a higher price and/or a fee. Another option is for the wholesaler to buy the property outright, then quickly sell it. The wholesaler uses a purchase and sale agreement (also known as a purchase contract , sale contract , or agreement of sale ), which states the purchase price and terms of purchase. Wholesaling can often be one of the faster ways to make money in real estate (sometimes it takes just a few hours!), which is why some investors center their business on this strategy (although many still include other types of real estate investments as well). In order to be successful, you need to learn how to find the great deals before the general public knows about them, where a professional like me can be helpful. Real estate agents and brokers can search the MLS for properties. Experts in wholesaling can also help you by searching off-market, as these are unique real estate transactions. Of course, this process won’t work if you don’t have the buyers. Make sure you’ve got a thorough database with their names, contact information, and all speicific property criteria. Remember, buyers won't get added to your list before you prove yourself and your wholesaling abilities to them. Set your goals. Your deals will more likely move with several buyer relationships in play.
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