7 W’s of real estate wholesaling
The 7 W’s of real estate wholesaling help provide a clear framework for understanding the process:
1. **Who**: Who is involved? Key players include motivated sellers, real estate wholesalers, and end buyers (often investors or house flippers).
2. **What**: What is real estate wholesaling? It’s the process of finding distressed properties, securing them under contract at a discount, and then selling or assigning that contract to an end buyer for a profit.
3. **Where**: Where does wholesaling work best? It thrives in markets with high demand, affordable homes, and active investor interest.
4. **When**: When is the best time to wholesale? Wholesaling can be done year-round, but it's particularly lucrative in markets with high foreclosure rates or during times of economic uncertainty, where sellers may be more motivated.
5. **Why**: Why pursue wholesaling? It's a low-risk way to enter real estate investing without needing large amounts of capital, allowing you to profit from the difference between the contract price and the end buyer's purchase price.
6. **Which**: Which properties work best? Distressed, undervalued, or off-market properties are ideal targets since they offer room for profit after repairs and renovations.
7. **How**: How does it work? You find a motivated seller, get the property under contract, and then assign the contract to an end buyer for a fee, without ever owning the property yourself.
Understanding these 7 W's can give a solid foundation for anyone interested in real estate wholesaling.
1. **Who**: Who is involved? Key players include motivated sellers, real estate wholesalers, and end buyers (often investors or house flippers).
2. **What**: What is real estate wholesaling? It’s the process of finding distressed properties, securing them under contract at a discount, and then selling or assigning that contract to an end buyer for a profit.
3. **Where**: Where does wholesaling work best? It thrives in markets with high demand, affordable homes, and active investor interest.
4. **When**: When is the best time to wholesale? Wholesaling can be done year-round, but it's particularly lucrative in markets with high foreclosure rates or during times of economic uncertainty, where sellers may be more motivated.
5. **Why**: Why pursue wholesaling? It's a low-risk way to enter real estate investing without needing large amounts of capital, allowing you to profit from the difference between the contract price and the end buyer's purchase price.
6. **Which**: Which properties work best? Distressed, undervalued, or off-market properties are ideal targets since they offer room for profit after repairs and renovations.
7. **How**: How does it work? You find a motivated seller, get the property under contract, and then assign the contract to an end buyer for a fee, without ever owning the property yourself.
Understanding these 7 W's can give a solid foundation for anyone interested in real estate wholesaling.