Today’s REI Classroom Lesson
In the REI Classroom today, Brian Sapp goes over what wholesaling is and how you’re able to make money if you’re doing an assignment.
REI Classroom Summary
Listen in as Brian shares strategies to avoid a double closing with assignments.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
Mike: Welcome back to the flipnerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Brian: Hi, my name is Brian Sapp with Novus Home Buyers, and today I’m going to be talking about how you can make more money with your assignments while wholesaling.
Mike: This show was sponsored by passiverental.com.
Brian: And so to give you guys an example as to what wholesaling actually is. So what wholesaling really is, is just having a real estate property under contract and selling that contract for a larger amount. So for example, if you had a seller that wants to sell their house for say, $100,000 then what you would do, you would sell that contract to another investor, an end buyer, for $110,000 and then that way you would make the difference. And so that’s how normal wholesaling works.
And a quick tip to avoid some double closes is to really build a good relationship with an end buyer, because if you have that relationship and you can not have your assignment be on the [inaudible 00:01:11] so that way you don’t have to do a double close. But first of all you have to build trust with that end buyer over a period of time and make sure that you have a contract in place with them that they will pay you specifically from the sale of that property.
And that’s a good way to avoid double closing because what happens is, you want to work with people that are open and honest about what you’re going to make from your wholesale fee. Because what is going to happen is that you’re going to build that relationship over time and it’s going to be a pretty transparent relationship. So them having knowledge about what amount of money you’re going to make should be irrelevant. And so again that’s a good way to avoid the double close and make more money with your wholesale assignments.
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Please note, the views and opinions expressed by the individuals in this program do not necessarily reflect those of flipnerd.com or any of its partners, advertisers, or affiliates. Please consult professionals before making any investment or tax decisions as real estate investing can be risky.
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