A lot of seasoned real estate investors consider this the first step to a successful real estate investing career because of the many facets of the industry, this business perhaps requires the least amount of financial capital. A lot of aspiring investors wonder if this is even legal because of the small financial investment needed to wholesale a house. The truth is there is a little secret these people do not know: when wholesaling houses, you can sell the property without buying it first.

Unlike when you’ll rehab real estate, you can simply place a property under contract when you wholesale it. That means the investor who owns the contract will have the right – take note, the right and not the obligation – to buy the property. You will only lose the money deposit you made. How much is the deposit to place a property under contract? Some investors make $10 deposits. Believe it or not, you can start a career in real estate investing with that amount of capital.

There are other methods of closing a wholesaling houses transaction but those who want to earn money fast simply assign the contract to another investor (this investor is usually a rehabber). That’s another reason why it’s called the first step: the investment property usually passes through the wholesaler before it goes to other investors and eventually homeowners.

Wholesaling is fast becoming popular today. Find out if this real estate venture is right for you. Simply provide a valid email address below to join the discussion.