Wholesaling is somewhat similar to the lease option sandwich, since you assume the role of a middleman. This is another great way to get started in real estate with no money down, but you will have to put some time and hard work into putting this strategy in place.
These are the steps to follow to use wholesaling to get started with real estate:
- Look for someone who wants to sell their property. This strategy works best if the seller simply wants to get rid of their property and they do not want to invest time or get help from a real estate agency to find a buyer.
- Sign a contract with the seller. The purpose of the contract is to get a specific price in writing and, ideally, to have the seller agree to not selling the property to anyone else.
- Look for an interested buyer. Once you have found a serious buyer, sell them the contract you negotiated with the seller.
The downside of wholesaling is that looking for good deals and buyers takes time.
However, you can get started with wholesaling even if you don’t have much experience. Wholesaling doesn’t require you to invest any of your money and will help you develop excellent negotiating skills and connections.