Real estate wholesaling is when an individual or a company, known as the “wholesaler,” acquires a contract from the seller of a property and assigns that same contract to an end buyer. The wholesaler does not purchase the property, and instead, the owner’s temporary contract allows them to sell it on their behalf.  The goal is to sell the property with little to no money out of pocket for the seller.

 

These properties are typically not in the best shape or what is considered to be an off-market home. 

 

Oftentimes the current owner no longer wants or maybe doesn't even need the property.  Whether it is because they are unable to or unwilling to pay for the repairs necessary to prepare for a typical sale on the market with a realtor.

 

End buyers are usually real estate investors or rehabbers who prefer not to spend time finding these kinds of properties.  The wholesaler is basically the middleman!