Wholesaling - Wholesale
Wholesaling - Wholesale
Hi friends ... Another post that gives you value..Third Round 3/3
Today we will talk about Hall-Sling, and in his name in English Wholesaling
There are some rubbish friends on the forum here, feel free to refine and add
wholesaling
It is basically when an investor, for that matter, is called a “wholesaler”, signs a contract with the home seller and markets the house to potential buyers, and then assigns / passes the contract to the buyer. The investor's (wholesale) profit is the difference between a contract price with the seller and the amount paid by the buyer.
Of course?
Guess yes but let's put it a little simpler again:
The easiest way to understand the concept of wholesaling
Is to look at wholesaling in general like for example no money given as down payment and no credit
Wholesaling
It's basically just buying the product at a discount, and selling it at a profit
that's it. Often this is done in larger quantities, and sold through resellers or distributors, but should not be.
The goal in real estate wholesaling
Is to sell the house before the contract with the original landlord becomes a finalized deal.
In some cases it may be sold to a regular buyer who is looking for a home, but more often it will sell to other investors looking for a stream of deals.
A typical hollow-sailing activity scenario looks like this:
The wholesaler has a home under contract for $ 90,000 and he estimates that it needs repairs at $ 20,000 $ and its final market price will be 150,000 $.
Through his investor network, he finds a buyer for $ 100,000. And passes the contract to him so that the buyer has a high-profit project.
The wholesaler makes $ 10,000 profit without having been the landlord at all.
The key in wholesaling
It is a restriction on the purchase contract that allows the wholesaler to withdraw from the transaction if he is unable to find a buyer before the expected closing date. This limits the risk of a wholesaler.
This is basically like a flip deal, except that the time frame is much shorter and no repairs are done at home.
In fact, the wholesaler never actually buys the house.
Wholesaling
It is far less dangerous than Flip, which can involve overhauling and associated costs.
B-
wholesaling
Involves far less capital than flip. Generally serious money payments on some sufficient assets. The success of the deal is based on market knowledge and relationship with investors so that the contract sells out quickly.
Also note that there is a risk if you put money in for the right to the property, without a refund ... so if you didn't find a buyer, you lost that payment.
Link to the original post on the United States Real Estate Forum on Facebook
How is a contract sale actually done? Who in the end buys the property and is in contact with the seller, the wholesaler or who the wholesaler sells to?
LiorLiorchik
Can you please add to the Wholesaling Real Estate Unit?
Lior asked me to add a comment from another post:
Odelia Abutbul would be happy to reply to this as well, giving you an initial reference and after that I will write again where everyone sees the response.
I think it's taking advantage of opportunities, most brokers work at market prices because that's what they know similar to Israel, abroad there are also a lot of unrenovated properties that are not in the brokers' systems (called MLS)
They identify opportunities as I usually call them, some of them identify better opportunities and some do not… and here comes our part in testing (which is a section in itself in terms of what needs to be done) on the property to understand its process.
Wholesalers are everywhere, not just in real estate, they are the unofficial realtors (since they do not hold a license to do so), the classic model is about locating a property, lowering it to a contract with an option to cancel the agreement or transfer it to a third party (which is usually you or another buyer ) For a commission that will usually be charged from the buyer and not from the seller.
Where to find them?
Facebook, LinkedIn, myhousedeal.com which is mainly wholesalers, Craigslist, Kjiji and other sites - there are also wholesalers sites we buy houses… You can contact them and ask to see their lists.
The commission of wholesalers can range from a minimum of 2,000 to .. The sky is the limit depending on the type of transactions they make - by the way, you can always ask them what their commission is, most of them will answer….
Successfully:)
One more point for the common good: There is no need for Holsler to do it sometimes.
I am for example in every deal I am under contract even though my intention is to develop the house or land I just bought. I always check if it is worthwhile to sell the contract to someone else to make a small but quick profit without spending a single penny. I did this several times and it was worth it. For example, I once bought land for a three-apartment building. At $ 100. I sold the contract for $ 170 to another entrepreneur
Excellent post champion. ??
Me and my partner (Moshe Amsalem) have been engaged in holsale for nearly two years in Columbus Ohio, specialize in the probate world, we have a working system, we have closed a number of transactions so far and yet find it difficult to rise to the heights we wanted.
Looking for someone who is experienced and successful in the Wholesaling field who would like to serve as a business mentor and accompany us personally for a profit distribution.
For those who are relevant, feel free to contact me.
Thanks
Excellent Ido. The entry was added to Nafdia Real Estate, see Volume of Concepts in the Real Estate World, Wholesaling Verse. Be strong and courageous !
Do you like the usual lily of the forum and real estate?
Very interesting and a great way to make money without money. I would love to get to know the field cannons and “easy” areas i.e. a quick likelihood of execution
Something else that needs to be understood is that the amount of wholesalers work (who work at it, not one-time), is not at all substantial.
The same art of finding properties off the market (almost exclusively by marketing that costs quite a bit), negotiating with the sellers, finding buyers and reaching a closure - this should not be underestimated… It's full of work
There are many other actions that the Wholesaler does to get deals done:
Where do the deals come from? They usually do not come from MLS, although our friends Tomer Kalimi is one of his specialties.
There are methods of contacting homeowners whether it is yellow letters.
Bird dogs… walking around
In neighborhoods and knocking on doors
Voice dropping
Leaving a message on people's phones…
Getting the houses that are off market is the art of wholesalers… Profit is nothing more than a result?
YoniKessous
Thanks for your input…
Someone like me knows you are a well of knowledge ..
The end of the post was incomprehensible to me..the last line..Can you refine please?
Also, the 10 example is a thousand for illustration.
Some make a bigger round and some smaller…
Transactions with a profit of 30 thousand This does not indicate an unusual discount in the transaction? Since you are mostly familiar with Flipper…
I was hired by a financing company that I worked with for investors that if the investor bought from a Hall-Sailor..he will only receive financing if the profit of the Hall-Sailor is up to 10%…. Just a point to pay attention to
Added that there are a lot of situations where there is an action called double closing that you happen to do and you as a wholesaler do not want to seek your profit. Ido noted here is a $ 10000 profit that it is nice to have deals that you can make $ 30k north. It looks simple on paper but in practice it is one big operation.
Lior Liorchik
LiorLiorchik
Study unit
Excellent.
Thank you
Mor Amira Chen Lerner