Wholesaling properties is one of the best ways Kathy Kennebrook knows to make a fortune quickly and easily in the real estate business without using a single dollar of your own money, no matter what your market is doing. If you need to make money rapidly to pay bills today, or you are just getting started in the real estate investing business, then wholesaling is the quickest and safest way to do it. Kathy Kennebrook believes that wholesaling is one of the easiest exit strategies to learn in the real estate business. Folks all over the country from all walks of life are making thousands of dollars just from this one technique.
What Kathy Kennebrook means by wholesaling is to put a property under contract significantly under its’ appraised value and then assign the contract to another real estate investor for a profit. They then close on the property instead of you. You get paid whatever amount you decide on ahead of time for assigning the contract to them. There are a lot of great reasons to wholesale a property and a lot of great reasons to buy a property from someone wholesaling it.
When you as a real estate investor buy a property from a seller which you intend to wholesale to another investor, it usually needs a lot of work, time and attention. If you still have a job or you don’t have contractors to do work for you, wholesaling deals is an ideal opportunity for you to still buy ugly properties and make a lot of money in the real estate business. If you wholesale a property to an investor and you leave them enough room to also make a profit, this is an ideal way for a rehabber to buy properties. They don’t have to do any marketing to get the property but they still get a great deal. Kathy Kennebrook knows lots of investors who do nothing but wholesale deals to other investors and make an excellent living doing the business only part time. She uses this technique herself when she acquires properties that need more rehab than she is willing to do.
It is pretty easy to protect yourself and your investment when wholesaling a property by taking a couple of simple steps. Step one is to put the property under contract with the seller, making sure the contract is assignable. At that point, you create a contract between you and the person you are assigning the contract to outlining such things as how much the assignment fee is and when your buyer is going to close on the property. This protects your interest in the property and prevents another investor from simply “stealing the deal†from you. There are lots of real estate investors in your area who will want to work with you on these deals. Kathy Kennebrook also has her wholesale buyer close at the title company she uses so she can make sure the closing happens the way it should.
For more information on wholesaling properties in your area, read part two of this article next week. In the meantime, visit Kathy Kennebrook’s website at marketingmagiclady.com. for more information on the tools you need to wholesale properties effectively.