Hey, everybody. This is Peter here at H&M Realty. I had a conversation the other day with an investor friend of mine. We were talking about wholesaling. He’s actually — He does a little bit of wholesaling. I have a couple of friends that do wholesaling, but that just kind of reminded me that there’s a lot of conversations out there. People through around the word “wholesaling” and I know not too many people, especially in the real estate world, who know exactly what wholesaling is. So I wanted to talk about it here for about a minute.
What wholesaling is – is you have a property worth $100,000 and the wholesaler buys it for that $100,000 then he turns around and he sells it to an investor or potentially a buyer for $100,000 or $105,000 or $102,000. So the difference there is what he is getting paid for finding that property at a discount; and that can work as $500,000 homes. I know we live in California, so it’s a little bit different. The price point is a lot more and it’s a lot more expensive out here. So if it’s a $500,000 home – the same thing.
But really where the value is in those wholesaling networking and also the connections that you have made or your real estate agent has or an investor that you know has is finding that deal, because potentially that deal can be $100,000 under market and that’s why they call them wholesalers is because they actually — They’re wholesaling the property, so they’re putting an extra fee on the property and they’re selling it to you or a potential buyer at a steep discount.
As I mentioned before when we started the video about sellers – it’s great for sellers, because let’s say we talk about 2008-9-10-11-12 when the market as very, very low and a lot of people that were in homes needed to sell them quickly – wholesalers. Wholesalers are great because they’re going to buy your property typically 99% of the time for cash.
So if you need to sell your house tomorrow or within the next 15 days, talk to a wholesaler or talk to an agent that is connected with multiple wholesalers or investors that are willing to wholesale your property and actually sell your property like that.