Simple Way To Make Money In Real Estate Part Time
Q: I want to get involved in real estate. Is it possible although I have a full time job? Gary, Edgewater, NJ
A: Yes, you can make money in real estate part time by wholesaling property. To be a successful wholesaler, you don’t need much money, nor do you need good credit. Real estate wholesalers engage in a kind of arbitrage, selling or ‘assigning’ purchase contracts that they negotiate. After a wholesaler signs a contract to buy a property, he has an equitable interest in that property that he can then assign to another buyer willing to pay a higher price—the difference in price between what the original seller agreed to sell for and the price the buyer the wholesaler assigns the contract to agrees to pay becomes the wholesaler’s profit.
Note: Wholesaling property is different from representing a buyer in a real estate purchase transaction. Anybody can legally wholesale a contract that they signed as the buyer to another buyer. In order to represent someone else however when they buy property, you have to be a licensed realtor.
Wholesaling property allows you to make money quickly upfront with little money at risk and wholesaling has very low downside risk because you never have to deal with the hassles, uncertainties and liability of actually owning the property in question. Thanks for your question, Gary.
For more real estate tips and information visit my blog at geraldlucas.com.