Wholesaling is a term used quite often among real estate investors, but do you know what it means?
Wholesaling is when a wholesaler (individual or partnership) obtains an assignable contract to purchase a property from the seller and sells this contract to another investor. The contract generally has a fee attached and when the contract is assigned and sold, the wholesaler receives the assignment fee and the seller is cashed out for the specified price of the property. There are several reasons why people wholesale. I’ve found it is common for people to wholesale in order to build capital so they are able to purchase properties on their own. Some people find that all they want to do is be wholesalers. Wholesaling is a great risk-free way of making money in real estate.