Category: Real Estate
Selling a Home to a Cash Buyer
Some of you have come across advertisements that say they are selling homes for fast cash even for ugly homes. Some may wonder what all these are about, well; it is a niche in real estate called wholesaling. It is a great business opportunity for newbies in real estate as they offer massive exit strategies in the business. A majority of people recommend that it is the best kind of business in real estate. They recommend it as a good way to start your investment career in real estate. It is uncertain if their claims are legit. Wholesaling in real estate is simply buying homes for cash. Most of the homes are usually damaged and the sellers are highly motivated. The sellers of such homes most times are normally undergoing certain situations that make it urgent for them to quickly sell their homes.
The homes get valued way under the standard market rates and this is why they are sold fast for quick cash. The buyer normally has two options once they acquire the house, either to upgrade and sell it or to hold it for rental purposes. The buyers also consider offering the seller an amount from which they can make substantial profit from. When sellers do this they get a reasonable return of investment which outweighs the risks they took.
The wholesaling business involves intermediaries who are the mediators of the cash buyers and sellers. Wholesalers are beneficial to new investors in real estate. New investors are spoilt for investment choice in real estate as they are many. However, it can be difficult for a new investor to know where exactly to invest in. The business opportunities that are available in real estate are getting forclosures with the intent to rent, wholesaling, leasing options flipping real estate contracts, fixing and flipping property or becoming a real estate broker. A new investor can decide on these different avenues depending on their talent, resources and their own personal goals. There are some reasonable reasons why investing in wholesaling are a great idea.
A big number of people has misguided ideas about wholesaling in real estate. Some people who are uninformed about wholesaling in real estate usually make wholesaling appear to be a fast way of getting cash. Real estate investors who are new are usually misled by the stereotypes of these individuals and they come expecting unrealistic things without knowing the key techniques for successful wholesaling. The professionals in real estate advise that there are some instructions that need to be followed if you want to make it in real estate.