In the world of real estate investing, the term “wholesaling” is commonly used to describe a process where:
1) real estate is purchased by a “wholesaler” – basically a marketing person who is knowledgeable about real estate – and then
2) that wholesaler offers to “flip” (assign) the contract to a group of cash buyers (real estate investors who buy, fix, and flip the houses), then
3) once a cash buyer is found, the wholesaler assigns the purchase agreement (for the house) to the cash buyer in exchange for an assignment fee.
4) At closing with the home seller, the cash buyer pays the title company for house and the wholesaler receives their assignment fee from the title company.
When people say they can teach you to “flip houses with no money or credit”, they are talking about this process commonly referred to as wholesaling.
At We Buy Houses® our position on wholesaling is:
– Many of our licensees do wholesale flips on deals that meet certain criteria
– Most are also cash buyers (real estate investors) that purchase, fix, and flip houses
– Wholesaling is a good way to start, and it’s something you might always do with certain opportunities,