What Is Real Estate Wholesaling And How Does It Work: A Beginner's Guide
                     What Is Real Estate Wholesaling And How Does It
Work: A Beginner's Guide
When most people think of wholesaling, they think of stores like Costco, as here you can purchase products 
in bulk. But there’s wholesaling in the real estate business too. And when you’re doing real estate 
wholesaling, there may come a time when you need flash funds.
But what is real estate wholesaling, and why is it done? Is it a better way of investing in real estate? To know
the answers to these questions, read through the sections below, where we discuss everything you need to 
know about real estate wholesaling.
What Is Real Estate Wholesaling?
Real estate wholesaling is when a wholesaler buys a contract from a property seller and then sells it to an 
investor. The first phase in wholesaling is finding a cheap property to put under contract.
Wholesalers often search for distressed homes that are listed at less than market value. These homes typically
require significant repairs, and the owners are usually eager to sell and uninterested in working with real 
estate agents.
Real estate wholesaling may be a great option for you if you want to invest in real estate but you don’t think 
you have enough money.
How Does Real Estate Wholesaling Work?
Real estate wholesaling is different from other kinds of real estate investing.
For one, most of the properties that wholesalers invest in are older homes that need extensive repairs. They 
bring these homes up to modern standards so they’re attractive to contemporary buyers.
The key is in finding houses that are listed at below market value. The wholesaler will come to an agreement 
with the property seller. Specifically, they’ll agree to buy the property for a specific minimum price within a 
given amount of time.
In the contract, it may be stated that the wholesaler has five months to sell the property for $100,000. The 
wholesaler will then have to find someone willing to buy the purchase agreement. It’s the goal of the 
wholesaler to sell the property for more money than what’s specified in the contract. So say the wholesaler is 
able to sell the home for $150,000 instead of $100,000. They’ll pocket the difference between the selling 
price and the contract price.
The Bottom Line
Since you don’t have to own property, wholesaling is a terrific way to profit from selling real estate. 
However, it does demand effort and commitment, and you’ll need to have the right resources to use this 
business model.
We at Doubleclose.com have walked in your shoes, and we understand the difficulties you may be facing. At 
DoubleClose.com, we help real estate wholesalers reach their business goals, and we know the ins and outs 
of double closing.
Resource Box 
The author runs a transactional funding service that real estate wholesalers around the nation use every day. 
If you need to execute a double close flawlessly, they can provide the transactional funding you’ll need. 
Visit https://www.doubleclose.com/ to learn more.