The three reasons to be in real estate are to earn quick cash, earn monthly residual income, and also to build long-term wealth. Sure, all of these sound great, but they may not all fit into your current repertoire, especially if you are just getting started.
Quick cash can be the life blood that fuels your entire real estate empire. One of the great ways to generate quick cash in real estate is to wholesale properties.
In the context of real estate investment, wholesaling is a remarkably easy concept, once you get your fingers around it. Basically, wholesaling is built around the idea of contract assignment, whereby one buyer is replace by another on the purchase contract. This assignment process comes with a fee and that is where the quick cash comes from.
What you do is work your real estate business (by marketing, advertising, and scouting your market) and find those great ‘diamond in the rough’ deals that are out there every day. All investors need two things: deals and the money to do them. When you find great deals, you are satisfying one of these needs.
When you offer great deals to other investors, they are more than willing to pay you to take the deal off your hands so they can rehab it, hold it, or whatever else they may wish to do. All you are essentially doing is finding great deals and dangling them out there like a carrot on a stick.
The great part about this is that you don’t need money to find deals and you won’t be closing on the deal yourself so, if you are just getting started in real estate and cash is limiting, this can be a great strategy to both learn the transactional side of the business and also produce quick cash, all with little to no financial risk. How cool is that?
Now, you may be wondering where I come into this, given that apartments and larger deals are my specialty. Here’s the great thing, folks. Wholesaling can be applied to any real estate deal, whether it’s a small house, parcel of raw land, or even a large apartment complex.
The best part about wholesaling large deals (and I have done this on many occasions) is that the assignment fees are much (I mean much!) larger. Instead of making a few grand to wholesale a single family home, you can earn tens of thousands or even six figures to assign a deal on an apartment complex. Sounds pretty good, doesn’t it?
The key to successfully wholesaling and putting that all-important quick cash in your pocket, is to aggressively network within the commodity you are working with. If you want to wholesale apartment complexes, you need to know who the realtors are who are selling these properties, who the property owners are, and most importantly who your buyers are out there.
When you can put these pieces of the puzzle into place, the possibilities for quick cash from wholesaling are endless, no matter what kinds of real estate properties you are working with. Then key is to get started, go out there and start working your business, and keep an open mind at all times. Quick cash is the ripe fruit waiting to be plucked and it is waiting for you!
