What is Wholesale Real Estate? - YouTube

hello their friend Jerry Norton here and today we're going to talk about exactly

what is wholesale real estate

alright guys welcome and I am really excited about what we're gonna talk

about today it's beautiful outside here at home so we're actually gonna film

outside right now and I wanted to take a minute on this video and talk to you

about a question that's asked to me very very often which is what is wholesale

real estate what exactly is that you know a lot of people love the idea of

making money with real estate and on this channel it's all about how to gain

freedom by using real estate as a means to do that freedom financial freedom

time freedom that's everything we talk about on this channel and so the fastest

way I believe in one of the best ways to achieve financial freedom very quickly

in real estate is by doing a strategy called wholesaling now wholesaling think

think the opposite of like buy and hold rental property it's not a long-term

strategy it's a really short term strategy and the basic idea is you get

in and you get out of a deal very very quickly sometimes the same day and you

make some money okay now what's cool about wholesale real estate is we're not

actually dealing with the house we're actually dealing with paperwork so you

know we tend to think in terms of like an asset with real estate we think of

the house a tangible thing right well that's not the case with wholesaling

here's how it works you're basically going to get a contract

to purchase a property from a seller we call them a motivated seller it's

somebody that's really needs to sell their real estate there's a hardship

going on there's some kind of stress about it either financially or maybe the

properties in in a lot of disrepair and they just want to get rid of that

headache they want to they want to alleviate that burden that that property

is causing them right now what they do then is they're willing to sell it to an

investor as is so meaning no repairs are needed nothing else needs done they can

just sell that property be done with it and that's what they're looking for an

investor who can step in and solve that big problem for them so then as a

wholesaler what you do is you get a contract with that motivated seller

right that piece of paper that says the seller agrees to sell it at this price

you agree to buy it at that price and now you have that contract well that

contract that paper has value now because another investor who's

looking for deals would love that deal they would step right into your shoes

and they would take that deal so then what you do is you take your paper your

contract that has value and you flip it to that other cash investor that other

investor that wants that property so you assign it we call it as it's called an

assignment or you flip your contract to them they then step into your shoes

they're now the buyer they now go to the closing with the seller they fund it

with the cash their money not your money their money they buy that property and

they pay you a fee for the right to then buy your contract that makes sense so

they'll pay you $5,000 all the way up to $25,000 you know just kind of depends

every deal is a little different but that's typically what you can look at

five to twenty five thousand dollars that's the value of that contract you

have if you've got a good deal okay the key is getting a good deal and once you

have that deal you can then flip your contract so the thing that's important

to know is that there are motivated sellers all around you right in your

backyard in every market in the US and there's also cash investor buyers that

are looking for deals so by acting as the middleman you can

wholesale real estate and make a lot of money so listen when I first got started

that's what I did I I started in Detroit I was flipping

junker houses for you know like five and ten thousand dollars I'd get a contract

and I had to sign my contract to another investor and make five or ten thousand

dollars and I would repeat it I do several of those every single month it

allowed me to get out of my construction job at minimum wage and become

financially free all right we'll talk to you next time