Articles For Aspiring & Active Real Estate Investors
In layman’s terms, the assignment fee is the fee paid by the end buyer to the real estate wholesaler. This fee is for the wholesaler’s professional service of finding a property. The wholesaler then transfers completion of the intended purchase to the end buyer as outlined in the contractual obligation.
It doesn’t take much research to notice trends in real estate. According to the Bureau of Labor Statistics (BLS), workers in wholesale sectors will continue to be in demand as these occupations remain critical.
Regardless of where the economy heads, how much more will real estate wholesalers need to be at the top of their game?
To help fortify your foundation, in this article you’ll gain greater awareness of:
Real estate wholesaling is an investment strategy that has become popular in the current real estate marketplace. For experienced real estate investors, wholesaling real estate deals is certainly not a new investment technique but a strategy that aligns with the current market showing great appreciation. Currently, the national average appreciation rate in the United States is 14.5%, which is in deep contrast from 2019’s national average appreciation rate in the United States of 4%.
Historically, appreciation rates tend to follow significant economic events. The table below indicates a few recent economic events – which generated varying appreciation rates -
Note that a recession does not always result in the same rate or even the direction of housing prices.
But if you want to know why real estate wholesaling has become a preferred investment strategy, the answer is the 13.3% appreciation rate generated during the COVID-19 recession!
Real estate wholesaling has recently received much media attention as an investment vehicle because the nature of the investment strategy has made it one of the most popular investment strategies in the current appreciating real estate market. Ironically, wholesaling real estate is nothing new, with the principles of wholesaling present in every sector of a capitalistic economy.
The real estate wholesaling business resembles the fix and flip strategy. The primary difference is that a wholesaler generally does not rehab or update the property as their objective is to close as quickly as possible. A reduced purchase price (generally below market value) is desired, with financially challenged sellers often looking to move quickly. It is noted that the type of property is not relevant as wholesaling can be done with rental property, an owner-occupied property, or investment property.
A wholesale deal in North Carolina offers real estate investors distinct benefits, as follows -
Virginia is one of the 13 original colonies and was settled more than 400 years ago when the English established Jamestown in 1607.
It's the home state of George Washington, Thomas Jefferson, and other founding fathers. Northern Virginia is close to Washington, D.C., and that's part of the reason it played an important role in the American Revolution and the Civil War.
Known by many names, including Old Dominion, Mother of States, and the Cavalier State, Virginia is an affluent crossroads that makes it one of the key economic and government centers in the United States.
If you’re thinking about investing in Virginia real estate, you may be asking yourself: Is Wholesaling Real Estate Legal In Virginia? This article will help navigate the legal landscape of wholesaling in the Mother of States.
Although it’s one of the smallest states in the nation at just over 9,300 square miles, like its immediate neighbors Vermont and Maine, New Hampshire is a beautiful and visually striking place nestled in the heart of New England.
If you’re thinking about real estate wholesaling in New Hampshire, we’ve got some important information you’ll want to know.
Real estate wholesaling has made investment headlines lately. While it is not a new real estate investment strategy, its recent popularity can be attributed to some of the benefits it offers real estate investors. Here are the impressive benefits available to consider for both investors and wholesalers –
Real estate agents and licensees often voice their concern that...
Real estate wholesaling is an investment technique that has recently become quite popular because –
With its rise in popularity, opponents have voiced concern, contending that real estate wholesalers are violating license law by performing actions that rise to a level that requires a Massachusetts real estate license.
This is simply not true. Wholesaling principles are present throughout a competitive marketplace, seen even in the local lemonade stand run by the neighbor’s kid. Wholesaling real...
Utah is one of America's most unique and fascinating states. It was admitted to the union as our 45th state in 1896, also making it one of our youngest states.
Fifty years prior to statehood, Mormons first settled Utah as part of their search for a promised land free from religious persecution. Today, Salt Lake City is the world headquarters of the Church of Jesus Christ of Latter-day Saints.
Mormons still make up about 70% of the state’s 3.2 million people and have considerable influence on many parts of the state and its institutions.
Utah is centrally located making it an important transit center, has a thriving economy, and a relatively young and economically stable population base.
For these reasons and many others, you may be asking yourself if wholesaling real estate is legal in Utah, and if so, what do you need to know if you’re considering this as an income-producing venture.
The real estate wholesaling business simply refers to an investment technique. A real estate wholesaler or investor enters into a purchase agreement (or contract of sale) that establishes for the buyer/wholesaler certain rights/obligations under the Doctrine of Equitable Interest or Equitable Conversion, but then chooses to sell these established rights to someone else, an end buyer, before the sale closes.
The difference between the original sale price for the investment property and the higher price paid by another buyer, often a cash buyer, is the earned assignment fee.
In other words, the buyer takes ‘equitable title’ or becomes the ‘equitable owner’ when the contract is fully executed. The time referenced in this regard is defined as the time between these two homebuying events -
Real Estate Wholesalers are investors who employ a technique in which they sign a purchase agreement (with the inclusion of an earnest money deposit) as the buyer. But then the wholesaler finds another party (often referred to as the end buyer) to purchase the real property (rental property, or otherwise) for a higher price – to wit, the profit earned as a middleman.
Wholesale houses purchased by real estate wholesalers tend to be below market value and offered by motivated sellers and those facing financial distress and uncertainty, like with the circumstances created by a pending foreclosure.
When investing in wholesale properties, the contract’s buyer receives this transferable right by way of the contract through the Principle of Equitable Conversion or Equitable Interest.
Because real estate investors may work several of these real estate transactions at once, they are referred to as 'wholesalers.'
Real estate wholesaling is similar to the fix and flip...