Wholesaling properties allows you to make money by controlling a property without buying it. You also do not have to use any of your own money, have good credit or deal with tenants. Let’s look at how this is done.

First, you must find a motivated seller who is willing to sell their property below market value. Examples of these types of owners are ones facing foreclosure, losing their job, going through a divorce, trying to sell the house by themselves, or inheriting a property. 

Second, the property has to have equity or have monthly cash flow. Since you will be flipping the property to an investor, there has to be enough equity for you to collect your fee and for the investor to make money should the investor decide to sell it. If the investor decides to rent the property for monthly cash flow, the rent must be more than the monthly payment. The investor will let you know what type of property they are looking for.

Third, negotiate the deal. Once you have found a property and analyzed the numbers, you need to negotiate with the seller. You already know how much you are willing to pay because you have done the analysis. Now you must negotiate with the seller to get the price, terms and conditions that will enable you to wholesale it and make a profit. 

Fourth, control the deal. Once you have agreed on the price, terms and conditions, you must get the agreement under contract. The contract must have a clause that allows you to assign it to another investor. 

Five, selling the deal. Hopefully you have been building your wholesale buyers list and can send out a message announcing your deal. If not, you need to market it in local newspapers, EBay, CraigsList or any other form of advertisement to get the deal sold in the time you and the seller have agreed upon.

Six, collect your assignment fee. You determine the amount of the fee. One percent of the purchase price is normally used as a general rule or you may decide on a certain amount you want to make per deal, like ten thousand dollars. The assignment fee is usually collected at the closing.

As you can see, wholesaling properties is simple and straightforward. You can make money just by controlling the property. As with any real estate investment, you must first find the deal. 

About the author: John P. Myers is a successful real estate investor in N. California. He specializes in foreclosures, probates, and abandoned properties.