If you are looking to make a quick buck without laying out a lot of cash up front, wholesale real estate, also known as house flipping, is an effective way to accomplish both of those goals.
Wholesale Real Estate Delivers a Quick Profit
In wholesale real estate, Long Island investors can gain a financial windfall when they buy a house and then sell it quickly. While many people assume the property would be a fixer-upper or a foreclosure, it’s possible to flip a house without doing any work to it.
For example, you research communities in Nassau County and find an underpriced house in Mineola for $500,000. Your offer to buy the house is accepted. You then quickly find a buyer for that property at $510,000. In a short span of time, you’ve made $10,000, a substantial return on your investment.
Investors often speculate in up-and-coming or under-valued neighborhoods.
No Credit Requirement or Cash Necessary
If you have no credit or bad credit, you can still reap the benefits of wholesale real estate, because you aren’t actually buying a home. Instead, you are just a conduit between a seller and another buyer.
Investors often lend money with interest to those speculators flipping a house.
These are three types of investors:
- Partners
A partner may be anyone you know who is interested in a solid investment: a friend, a business associate, a relative.
- Hard Money Lenders
Hard money lenders provide cash to individuals at a very high interest rate.
- Private Money Lenders
Private money lenders are everyday people who are looking to invest in real estate.
Gain Valuable Real Estate Experience
Wholesaling is a great way to enter the world of real estate investing. From this experience, you will learn the ins and outs of the art of the real estate deal, such as the criteria for buying and selling investment properties.
Then, you can begin profitably rehabbing real estate properties if you are interested. You will also gain the ability to recognize hot real estate opportunities, which will help increase your return on investment in future deals.
