What is Wholesale?
You may have heard of wholesale before when it comes to retail– a company will sell a retailer a product in bulk, and then the retailer will repackage that product and mark up the price. Although Win-Win Property Group does offer to buy multiple properties from investors in one transaction, this is not what wholesale means for us.
In the world of real estate, wholesaling is a process where the wholesaler buys properties at a discounted rate and then offers them as a deal to other investors. Whatever profit is made on the transaction is kept by the wholesaler. It’s that simple!
Let’s say a wholesaler finds a seller who is willing to sell their home for $80,000. The wholesaler buys the home and begins looking for investors who want the property. They find a buyer, sell the home to them for a markup, let’s say $90,000, and keep the $10,000 profit. There are several reasons why a home may be wholesaled: maybe the owner needs to sell the house quickly or the house is in bad condition.
At Win-Win, we both buy and sell wholesale deals. If you have any questions that this article didn’t answer, this blog post on Biggerpockets might help you out. If you have a home you’d like to sell to us, or have a property you’re trying to wholesale yourself, please contact us– we’d love to hear from you.