What is the difference between rehabbing and wholesaling houses?
Rehabbing is basically buying an undervalued property and repairing it to raise its value. You then resell it fast. In wholesaling, you don’t touch the property. You sell the contract to buy the property to another wholesaler or to an end buyer.

Where can I find properties to rehab?
Drive by the neighborhood where you want to buy a property in. You can also search properties online. Google “rehab list” to find list of properties to rehab in your area.

What kind of properties can I rehab?
Basically any undervalued property will do. Fixer upper homes, also known as handyman specials, are ideal because of their affordability. You can also try houses up for short sales and REOs (real estate owned properties, which are also cheap nowadays.

How long must a rehabbing project last?
A few weeks is just fine. Start rehabbing the property the moment you get it. Don’t let it sit on the market for too long. It is likely to lose value if it is unsold after 90 days.

Where can I get money if I run short of funds for rehabbing?
You can borrow from banks and other traditional lenders, although the processing of these loans will take time. For faster access to financing, try hard money loans.

Wholesaling

Do I need huge investment capital to become a wholesaler?
No. Wholesaling is the act of placing a property under contract and then assigning that contract to another buyer, who will close the deal. Because you are not technically buying a property, you don’t need to have a huge amount of cash or to secure a loan to start out in this business.

How do I find houses to wholesale?
You can approach motivated home sellers who are willing to have their property placed under contract. These people are usually in a hurry to sell their properties and will be willing to accept your offer as long as you help them quickly get rid of their unwanted homes. You can also run an ad on the newspaper or on the Internet.

How do I earn money as a wholesaler?
Wholesalers earn money from the assignment fee they collect from the buyer of the property at the end of every deal. Assignment fees usually range from $5,000 to $15,000 per transaction. However, the amount of money a wholesaler may receive sometimes fall below or go beyond the abovementioned price range.