Wholesaling is a popular
investment strategy for distressed properties.
To wholesale a property, an
investor who specializes in locating distressed properties
negotiates to buy at a deep discount. The investor agrees to pay
cash and close the transaction quickly, sometimes within one
week.
The successful wholesaler,
even without direct access to capital to purchase the property
himself, can put the deal together because other investors on
his team have cash to buy now. The wholesaling investor will
assign the purchase contract for a wholesale fee to the investor
buyer who closes on the transaction directly with the seller.
