Why Many Investors Prefer Wholesaling Over Other Real Estate Investing Strategies

A battle, they say, is won by those who have good strategies. If a general or warlord is able to come up with a plan that allows him and his troops to outsmart their enemies, then he can expect a quick victory. The same principle holds true when you invest in real estate. If you don’t want to be a loser, you must have good real estate investing strategies in place.

For a beginner, one of the best real estate investing strategies that you can use is wholesaling. Wholesaling is basically defined as the process of placing a property under contract and then finding an end buyer for that contract. The reason why it is ideal for a newbie in the business is that it is less risky and you can start building your real estate empire without having the need for a huge investment capital.

How is this possible? It is simple, really. When you wholesale a house, you don’t buy the property itself. Because you don’t have to shell out some cash for the purchase of the house, you won’t need a huge investment capital. And since you’re not investing a huge amount of money, there is little or no risk involved.

For as little as a $100-deposit, you have the power to control a property worth thousands of dollars. You can also decide to whom you are going to assign the contract to. And by spending about $100, you can earn about fifty times of the same amount once you have successfully facilitated the sale of that property. Now, isn’t that amazing or what?

Real estate investors who prefer wholesaling over other real estate investing strategies usually earn somewhere between $5,000 and $15,000 worth of assignment fee per transaction. Depending on the type of deal or the property that they were able place under contract, the figure can be as low as $3,000 or as high as $20,000.

However, wholesaling properties is not as easy as you think. If you don’t know anything about marketing, if would be difficult for you to find properties to be placed under contract or end buyers for the contract that you have acquired. Therefore, if you want to succeed using your chosen real estate investing strategy, you also have to master the art of marketing.

Meanwhile, if you want to explore other real estate investing strategies, visit www.REIWired.com. The website has all the learning resources that you need to succeed in the real estate investing business.