Wholesaling is a strategy that involves purchasing a property from the seller and then quickly reselling it to an end buyer for a higher price. However, it’s not just that. This kind of business involves a lot of planning and effort. It includes finding a seller, negotiating with them for the best deal, then finding an end buyer willing to pay a higher price for the property.
If you’re interested in learning more about wholesaling, keep reading. Here, we’ll go over the definition and how it works.
What Is Wholesaling?
Wholesale is a strategy in which a wholesaler buys properties to resell at a higher price, usually within a short period. In most cases, the wholesaler puts down a small earnest money deposit to secure the property from the seller. The purchase contract will specify how much the wholesaler plans to buy the property for and how long they have to do it.
After the wholesale contract is finalized, the wholesaler tries to locate funding for purchasing the property and an end-buyer willing to buy it at a higher price. The price difference is called the wholesale fee, which is commonly $5,000-$20,000 but we’ve seen them over $100,000.. This profit goes straight into the pockets of the wholesaler.
How Wholesaling Works
Wholesaling takes time; you must research the property and find a motivated seller and buyer. Here are the steps for wholesaling:
1) Conduct Research
2) Locate A Distressed Property
3) Do The Numbers & Required Diligence
4) Contact The Seller
5) Sign a Purchase and Sale Agreement with the Seller
6)Sign a separate purchase and sale agreement with the End Buyer
7)Find A Transactional Funding Company
8) Send all contracts to the closing company to start title search and schedule closing date
Following these steps makes it possible to make good money in wholesaling, even without a lot of capital. It’s important to note that not all states allow wholesale deals. So, before pursuing a career as a wholesaler, check the rules and regulations in your area.
Fund Your Deals With Wholesalers Transactional Funding In North Carolina
If you’re planning to start a wholesaling business, getting transactional funding for wholesalers in North Carolina is a must if you plan on double closing. You won’t have to worry about the financial aspect of your business since Wholesalers Transactional Funding offers quick and easy access to funding. You can use this funding to get the property you spotted.
Wholesalers Transactional Funding funds 100% of the purchase plus closing costs and won’t ask for complicated paperwork. We have a flat fee of 1% plus a $30 wire fee, no other hidden fees or last second requests. Contact us today to learn more about our company and how we can help you!