Wholesaling properties in West Palm Beach, FL is an interesting field to get into. There are many aspects to learn here though. If you want to try this kind of venture in order for you to earn profits, you may be in luck. There are many people today who are involved in wholesaling or flipping houses. With the right techniques and the know-how, you can profit from this activity.
What are Wholesale Properties in West Palm Beach, FL?
Wholesaling in this part of Florida and pretty much anywhere else involves buying properties at prices where the real estate will sell quickly, and the property is fixed and flipped (or just flipped to have someone else fix it). In this market, this is the fastest way to sell a house. The property typically gets sold to a contractor or somebody who can fix the property up and then sell it at a profit in the retail market. A wholesaler can target particular areas, or buy over the Internet in different states through government programs.
Retail purchase or sale of real estate involves using a realtor and a mortgage company. Unless you’re going to pay in cash, conventional financing has to be obtained through institutions such as banks. They have certain requirements in terms of the down payments and what you have to do to purchase the house.
In wholesaling though, you typically use hard money lenders to get bridge loans, or you design the deal so the money you get from flipping it is used to purchase it. The only requirement for hard money lenders is that the value of the loan be a certain percentage below the value of the house (70 percent or less of the value of the house is standard). There’s also a type of “bridge loan” where companies will fund your deal so long as you have a buyer (they generally charge in the neighborhood of 2 percent). When the closing goes through, they get their money from the title company or the lawyers.
More about Wholesaling
There is also seller financing and lease options. With seller financing, the seller’s financing (i.e. – their existing mortgage) is kept in place, and the buyer/investor pays the seller’s mortgage for a period of usually up to five years, at which time the buyer/investor finds another vehicle to finance the purchase. This is good for people who may be rebuilding their credit and can’t get a conventional bank loan, or for an investor who will be charged a higher rate by the bank. With lease options, the seller retains ownership, while the investor rents the place out. Should the tenant decide to buy, the investor purchases the house at a pre-agreed price, and then sells it to the tenant who is buying at a pre-agreed price.
Wholesale properties in West Palm Beach, FL should not really be a challenge. Once you have found the properties that can be wholesaled, you only need an investor. Fortunately, you are in the right place. Here at RescueRealEstateLLC.com, we help you flip houses as if this is what you have been doing all your life. Learn more about us here.