what is real estate wholesaling

Real estate wholesaling is a strategy in which a wholesaler obtains a contract on a property with its seller and then sells the contract to an investor without ever purchasing the property. The wholesaler typically looks for discounted properties that are priced below market value and are in need of repair. The wholesaler then signs a contract with the seller and later finds an end buyer to assign the contract. The wholesaler earns a profit by charging an assigning fee, which is typically between 5-10% of the selling price. Real estate wholesaling does not require a large amount of money, but it does require that a wholesaler do the necessary property research, networking to find the right investors, and work to craft a financial deal that the investor will accept. Real estate wholesaling involves a certain amount of risk, especially if a wholesaler has to make earnest money deposits. However, it can be profitable for those who commit to the time and effort required to build a wholesale real estate business.