Wholesale Real Estate: What You Need to Know To Make Money in 2022

Real estate investing can come in many different strategies. The industry itself is massive and has many other asset classes, hold times, and business models that you can implement.  

When just starting, you may look into single-family rentals, the BRRRR Method, multifamily rentals, and commercial real estate. 

What is Wholesale Real Estate?

Wholesaling is a nickname used to describe a type of real estate investing or transaction where the investor buys and sells an interest in the property without holding it. 

The wholesaler has a direct relationship with sellers through various marketing forms. They can then negotiate the terms of a sale to take to another market and sell for a profit. 

Assignment Vs. Double Close

Wholesalers typically use a double close or an assignment of the contract to sell the property. The investor buys the double property close and immediately sells it to the end buyer. 

Frequently the title company waits until everything is signed and funded to execute both closings. The wholesaler assigns their interest in the purchase contract to the end buyer with an assignment model. 

Skills Required for Wholesaling

Sometimes wholesaling is viewed as an entry-level real estate investing option. That is because it does not take a lot of capital to get into wholesaling. 

At the minimum level, the only requirement is to get out to potential sellers and get the property under contract. 

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