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A Novice's Choice: Real Estate Investing
By: May C
Wholesaling is the quickest and easiest way to make a sale in Real Estate. It is less hassles, with almost no money needed to close on a contract. If you want to make money without putting out money, Wholesaling is the way to go!
Here is what to do. Start prospecting for wholesale buyers and sellers. Don't wait until you have found a property to wholesale before you start locating a buyer. Talk to people. Talk to your friends, business associates, your competitors. Do networking and meet new people. If they are not buying or selling, they can lead you to people who are, and they will know who to go to when they will be buying or selling in the future. It is always good to build relationships with people you might do business with later.
Almost all cities have their own local Real Estate Investment Club. The REI Club is a great resource to start with. Take advantage of it and join your REI Club. There you get to share and exchange information with other investors in the business.
A great way to get investors to come your way is to advertise. Advertising is one of the quickest ways to reach potential clients. Put up as many signs as you can everywhere and anywhere that they are allowed. Be innovative and resourceful when you advertise.
You can also do most commonly used forms of advertising. In the newspaper run an ad in your local paper and put in a buy houses ad. It is also a great tool to use to reach investors.
Make sure you secure the property with a Purchase Contract once you have found a good deal. If you are worried about the seller dealing the property to another buyer under the term of your contract, you can file a Memorandum or Affidavit stating your interest of the property.
Once you're ready to close, you may:
* If you have a wholesale buyer, you can:
> Assign your contract and let the Buyer close - do this option only if you are willing to give the Buyer some control over the property. > Close with the Seller first then with the Buyer - with this option, there will be two closing statements, one from the Seller to you and one from you to the Buyer, and two deeds. > Close with the Buyer first, then with the Seller - same with above, there will be two closing statements > Have the seller deed the property directly to your Buyer - the biggest advantage of this direct deeding approach is that you are out of the chain of title, and you can therefore avoid liability should any problems arise. Why unnecessarily involve yourself in the chain of title, when you are only acting as middleman to the transaction?
* If your buyer is not ready to close on your contract, you can close the purchase and hold on to the property until such time the resale can be done, providing, of course, that you have the financial resources to do so. This option requires the ability to close.
You will need to do business with a Closing Attorney or an Escrow Agent to execute the transactions.
Wholesaling is a great profitable business, one that is definitely worth looking into.
Good luck!
Article Source: http://www.ezarticles.info
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