Here’s a great video as part of our Real Estate Investing Guide series. This one goes over a Wholesaling Letter of Intent.
What Is Wholesaling Real Estate?
Wholesaling is just finding a property to buy or get control of (maybe by using an option), and then passing it on for an assignment fee. The idea is that you do the legwork of finding and tying up the property and then assign it to another investor who will either retail it, rent it or buy and hold it for later sale.
You earn less than you would if you did the whole deal yourself, but you save time and money by quickly flipping the property to someone else for a fee (usually between $1,000 – $20,000.
Advantages of Wholesaling Real Estate
1. Get paid fast – If you’re looking for quick cash, wholesaling is perfect. We’ve had students who found and tied up a property in our workshop and then sold it for as much as $20,000 profit one day later. The cool thing about wholesaling is that once you tie up the property, you can assign the contract and make your profit almost immediately.
2. Do More Deals- A lot of investors have too many leads, more than they can handle on their own, and a lot of leads have the tendency to fall through the cracks. Rather than wasting the leads that you’re generating, why not turn them into wholesale deals. Get the property under contract and then assign it to another real estate investor buyer. You make less than if you did these deals yourself, sure, but you weren’t going to do them anyway.
What Is a Latter of Intent To Buy Real Estate
We talk a lot about various forms and most of the forms we talk about are posted on our FREE REAL ESTATE FORMS page on this site. One of the forms we refer to quite a bit in our business is the LOI. An LOI is a Letter of Intent that you typically use in commercial real estate transactions. We use LOIs all the time when starting to negotiate on commercial properties.
If you’d like to see an example of a LOI Form Letter of Intent for real estate deals, check one out here.
Letter of Intent For Wholesaling Real Estate
Here’s a video to explain the letter of intent for wholesaling real estate…
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