Have you ever seen those late-night TV advertisements promising that you will make profits in real estate without using your own money or credit? Wholesaling Real Estate is what they can show you. For further information regarding this, feel free to visit them at Cash Home Buyers Atlanta – Snellville we buy houses
What is the concept of wholesaling?
It’s as easy as that. You look for a motivated agent, have the property under contract, and eventually transfer the contract’s “rights” to another individual for a price. The charge is usually a task fee, and it varies from $2,000 to $15,000. The fee is determined by the nature of the transaction, the market, and the sum for which the wholesaler obtained the property under contract.
Bandit signs, which typically say something like “we buy houses, cheap, cash, any condition, call xxx-xxx-xxxx,” are one way to advertise for motivated sellers.
In general, when you dial one of these numbers, you will be dealing with a wholesaler who will not necessarily “take” the house, but will find somebody who will. This might not be a negative thing for the land owner, who is in a position where they just need to move rid of the house for some excuse and don’t care who buys it.
There’s a chance the house won’t sell and the wholesaler is trying to advertise his trust in it to a cash buyers list. This occurs sometimes, and it has sadly earned wholesalers a poor reputation.
This is often the product of many newcomers to the “no money down” real estate investment game having no idea what they’re doing. But they get an offer from a vendor, but they can’t find a cash buyer because the deal wasn’t even that successful to begin with. Either they didn’t pay the correct amount for it, or their maintenance calculation is far off.
There are a few things you can do to safeguard yourself.
There are a few things you may do to protect yourself if you find yourself in a position where you need to sell your house quickly and contact a wholesaler.
Request a fair earnest money deposit. The majority of wholesalers will aim to have the land under negotiation for $10 or less, even if they can’t locate a cash buyer, they can just lose $10. I’d apply for a $1000 deposit as an earnest money deposit. Why wouldn’t they offer up at least as many if it’s a decent opportunity for them?
Inquire into the number of transactions they’ve completed. A successful wholesaler knows their figures and how many transactions they’ve completed, and they take pride in never walking away from a contract.
Request a list of sources.
Bringing all together.
So, if you answer to one of those “we buy homes” advertisements, you should know what to expect. There are good wholesalers and bad wholesalers in the same way as there are good wholesalers and bad wholesalers of every other industry. When selling your home, make sure you do your due diligence, ask questions, and if you have a gut feeling they are lying to you or doing anything shady, don’t do business with them.