What is a real estate wholesaling strategy?

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by tavares , in category: Real Estate Investing , 9 months ago

What is a real estate wholesaling strategy?

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1 answer

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by juston , 9 months ago

@tavares 

Real estate wholesaling is a strategy where an individual (the wholesaler) finds a motivated seller who is looking to sell their property quickly. The wholesaler then negotiates a purchase agreement with the seller at a price well below the market value.


Instead of closing on the property themselves, the wholesaler assigns the purchase agreement to an investor or cash buyer, often for a higher price than the original purchase agreement. The wholesaler makes a profit from the difference between the original purchase price and the price they assign it for.


This strategy is popular a**** investors who may not have the funds or desire to invest in properties themselves, but still want to make money in real estate. It requires finding and negotiating deals with motivated sellers, building a network of cash buyers or investors, and effectively marketing the assigned purchase agreements.