Bridger PenningtonFund Launch & Investment Expert

What Actually is Wholesaling Real Estate?

19 Jan 2023 · 1 min

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Real estate wholesaling is buying a contract on an undervalued property, then selling that contract to someone else for more money. You pocket the difference without ever funding the purchase or closing the deal. The speaker did two deals in his early twenties.

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What is wholesaling real estate? Most people claim this is the easiest way to get into real estate. I actually did 2 wholesale deals in my early 20s. So, how does this work? Essentially, you find a property that you believe is undervalued. You put that property under contract. So, you sign with that person, you say, hey, I'll buy your house for $90,000, but give me 30 days to close. During those 30 days, you take that property and then shop it out to other people at maybe $95,000 or $100,000. Hopefully, in that 30-day window, you find an end buyer that's willing to pay $100,000 for that property. You do an assignment contract where you assign from the seller to the end buyer and you actually take a $10,000 check on the spread right there. This is a very easy way to get started in real estate with no cash and no resources.