HomeVestors Knows The Two Methods To Use When Wholesaling Properties

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Wholesaling properties requires a solid understanding of how to creatively invest in the real estate industry.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years. The company knows that wholesaling properties has created financial freedom for many real estate investors. While wholesaling properties can make up an entire investment portfolio, it is better off at about 20% of a portfolio, due to its dynamic nature.

Wholesaling properties has changed dramatically with the advent of the Internet, as wholesalers can generate more exposure. Advertising techniques using both online and offline tactics can capture interested individuals who are looking to sell their property quickly. Most individuals who are looking to sell their property fast, end up going online and finding someone who is willing to pay cash for their property. In order to find these desperate sellers, place advertisements online and focus on making a marketing plan that encompasses the local market.

When considering a property, run the numbers to make sure that this property is bound to return a profit. Then put the property under contract, thus ensuring equitable rights to the property. At this point there are two ways to go about flipping the property. The properties’ purchase agreement can either be assigned to another buyer or the property can be sold to another buyer using the double close method.

If considering the assignment of contract, be sure to sign the purchase contract with “or assigns” after signing one’s name, giving one the ability to flip the contract to another buyer. After finding a buyer who is interested in the property for the price and the assignment fee, the paper work can be signed over to them and an investor collects their assignment fee. This fee is out in the open and can’t be too high; a figure of about $5,000 to $10,000 is usually appropriate.

The double close method is usually preferred when wholesaling properties because the profit on the sale is undisclosed. The investor agrees to purchase the property, giving what is known as an earnest money deposit. After finding a buyer, an investor flips the property over to them and an investor purchases and sells the property in one step. In order to perform this technique, work with an escrow agency that is familiar with double closing.

When wholesaling properties, these two methods, the assignment and the double close are the most common ways wholesalers earn profits in the industry without putting a great deal of capital down.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties. Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community. In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction. For more information, visit www.HomeVestors.com.

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