The Real Estate Wholesaling Strategy – Lesson 09

Being a “Real Estate Bird Dog” investing is a great way to generate sustainable income while securing your family’s financial. Unlike many other ways of investing, real estate entrepreneurs don’t need a huge pile of cash or high credit scores to get involved.  Wholesaling is one effective strategy for launching your own real estate investing enterprise.

Wholesaling — This approach to real estate investing involves many of the same elements of real estate bird dogging, but in this method, you actually contact the owner of the property, negotiate a sales price, and get the property under contract (with a purchase and  sale agreement).  However, you really don’t buy the property. Instead of buying it yourself, however, you assign (or sell) your interest in the property to another investor, who then completes the transaction in your place.  You do this by “selling the purchase agreement”.

For example, pretend you find a house worth $100,000 and you are able to negotiate a sale price with the owner for $60,000. You would write up a sale’s contract with the seller, but then “sell” your real estate contract to an investor.  Depending on the numbers and profit margins you can make a ton of money.  In this example, the investor may be willing to pay you between $1000 and $3000 for the right to complete the transaction with the seller in your place.

Again, the total amount of cash you can make for each transaction will vary depending upon the investor with whom you are working, the amount of work you have invested in the deal, and the profit margins. I’ve heard of real estate bird dogs getting as much as $5000-$40,000, depending on the profit margins available to the investor.

Filed under: Real Estate Bird Dog Training • Real Estate Bird Dogs

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