I overcame the flu and am well. Have been busy with my business. Please stay tuned for my newest blog for April 2019.
Wholesaling Part II
If you're not an investor as I am, you may be wondering why I speak so much about wholesaling. Well, there are lots of people in bad situations. They could be going through separation leading to divorce, have serious health issues and need a way out. If you find yourself in such situations, don't despair. If you have a home that needs TLC but no money for repairs, don't despair.
Investors like me are in business to solve seller problems. I work with a team of real estate professionals including those who work with contractors. On my end, I look at distressed single family homes with motivated sellers. Sellers who are more than willing to have their houses sold at a reduced price. I walk through a property, whether owner occupied or bank owned to see what rehabbing it needs. Using the comps in the area, I look at similar properties that have recently sold in the last year, comparing them to the property I've seen.
With seller approval of the reduced price, the property is put under contract, then aggressively marketed to my list of cash buyers. Cash buyers have the option to either rehab the home top to bottom, reselling it for top dollar. Or they decide to keep it, renting out the new space for monthly cash flow. The same process works for distressed multifamily apartment buildings.
In a nutshell, wholesaling is an alternate option of solving a problem. Once a property is under contract, contingencies must be in place between myself and the seller (or the bank). Also, a contingency with a cash buyer. This protects me so that in the event I don't find a cash buyer within 30 days, I have the right to back out without legal recourse. And I have the option to waive inspections.
It is a great process to achieve but you must know what you're doing. Wholesaling distressed properties is a great way to achieve financial independence--branching out into other real estate niches. Niches like self-storage facilities, office buildings, strip malls and larger shopping centers.