A wholesaler in a nut shell puts property (normally distressed property) under contract and assigns or resells the property to another investor. The investors a wholesaler sells to either use cash, lines of credit, or hard money loans. This allows quick closings on properties that sometimes need extensive repairs.
The wholesaler is effectively the “middle man”. By locating “deals” and quickly flipping these deals to other investors that are buying for true investment purposes, the wholesaler is filling a need in the marketplace.
The real estate market is terribly inefficient. It is these inefficiencies that create the opportunity for a wholesaler to step in, put a property under contract, and quickly find a buyer for that property and/or contract.
Historically, wholesalers have been taught to “just go find something cheap” and price will somehow overcome all objections. “If you buy it cheap enough, someone will want it.”
We do not promote this theory and in turn. promote the idea that the wholesaler should always start with the buyer in mind. Nurture the relationships with cash buyers and work diligently to understand their needs. From this, the wholesaler will be able to quickly identify properties that will “fit” into their investing criteria, pull the trigger, and position yourself for profitability.
We call it Reverse Wholesaling.
This is explained in more detail in my book: Reverse Wholesaling on Amazon and
On my video tutorial sites : ReverseWholesaling101.com
Kent Clothier is President and CEO of Real Estate Worldwide (REWW), a highly sought-after speaker, the owner of three multi-million dollar a year Internet marketed brands, and proud husband and father. Kent is motivated by his love of family and freedom, creating products that enable people to live their lives the way they choose.