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Thursday, May 7, 2009

Profit With Wholesale Real Estate Investing

By Gary Z. Bryant

The decision to invest in real estate can be scary and exciting at the same time. So many people fear what might happen to their investment in the event of a downturn in the market, but there are other investors who know the secret to profiting from real estate no matter what the market is doing. They know the secret of wholesale real estate investing.

What Is Wholesale Real Estate?

Buying wholesale real estate means finding homes that are listed for sale for amounts that are lower than the appraised market value. One way to find homes that are cheap by comparison to their actual value is to look for foreclosed properties.

People who own homes in foreclosure realize they might be selling their home for less than its true value, but they are motivated to sell quickly in order to try and fix their financial problems. The reduced price is often their way of making sure they can find a buyer quickly who can help them with their needs.

Why Should I Invest in Wholesale Real Estate?

It's easy enough to find foreclosed homes in every state across the country. You might choose to search online listings of these properties but there are other options for finding these great investments by yourself.

Once you calculate how much rental income you could receive from leasing out your investment, you might just find that it's higher than your operating costs. This means you're generating profits in the form of residual income each month.

How Do I Find Wholesale Real Estate?

It's possible to find homes in foreclosure all over the country. There are dedicated listings for people looking to buy foreclosed properties, but there are also other ways you can learn to source your future investments on your own.

Of course, once you find a property that you want to buy you may have found that it's already going to court auction and you've missed the pre-foreclosure window. Buying at auction could potentially see other people bidding against you which can increase the price higher than you wanted to pay.

Should I Buy Lots Of Foreclosed Homes?

Just because you find a home that looks like it's a bargain price, this doesn't mean it's a good investment. You should also remember that just because a home is in foreclosure doesn't mean it's going to be a bargain. Before you buy any property you need to make sure the investment is sound based on its own merits.

After all, if you want to create an investment out of the foreclosed property you're buying then it will either need to be able to generate rent or to generate profits by re-selling it at real market value.

The easiest way to learn everything you need to look for and learn exactly how to set up your investments to maximize your returns is to enroll in a real estate investing course. Once you're shown what steps you need to take, you'll realize how easy it really can be. - 23222

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