{"id":11393,"date":"2022-08-15T13:02:44","date_gmt":"2022-08-15T13:02:44","guid":{"rendered":"https:\/\/www.realestatewords.com\/?page_id=11393"},"modified":"2022-08-15T13:28:38","modified_gmt":"2022-08-15T13:28:38","slug":"real-estate-wholesaling","status":"publish","type":"page","link":"https:\/\/www.realestatewords.com\/real-estate-wholesaling\/","title":{"rendered":"Wholesaling Real Estate"},"content":{"rendered":"

Real Estate Wholesaling Definition<\/h2>\n

Real estate wholesaling<\/strong> means putting a property under a purchase contract<\/a> with the seller and then assigning the contract to an end-buyer who closes with the seller and pays the wholesaler an assignment<\/a> fee.<\/p>\n

Explanation<\/h2>\n

Real estate wholesaling is a short-term investment<\/a> strategy used to make money quickly and without actually buying real estate.<\/p>\n

The only substantial investment made by the wholesaler is an earnest money deposit<\/a> given to the seller. With a properly composed contract<\/a>, the deposit is refundable if the deal falls through.<\/p>\n

Wholesalers find motivated sellers<\/a> willing to sell their real estate at a discount. They sign a purchase contract with the seller as if the wholesaler was the buyer.<\/p>\n

The contract contains a clause allowing the buyer to assign the agreement to a third party.<\/p>\n

At closing, the wholesaler assigns the contract to the actual buyer \u2014 normally a home flipper<\/a> or landlord<\/a> \u2014 who pays the wholesaler an assignment fee and buys the property from the seller.<\/p>\n

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