Angelica's House

If you are planning to sell your house, do not hesitate to seek assistance from a wholesaler. Wholesalers being in the business for years know what you need and how to meet them. Furthermore they know exactly how to sell the house in a quick time and at a good price.

If you want to sell the house yourself, you may not get best price and may waste a lot of time. In both cases, you would have to face some loss. Wholesalers generally have a number of ways to sell your house. It is nevertheless important to understand what methods a real estate wholesaler would offer you. Having a prior knowledge about what the wholesalers might do would make the selling process and your dealing with the wholesaler easier.There are a number of selling methods the wholesalers might want to exercise. Here are the best methods of real estate wholesaling:

Cash

The first method is cash. Among all other methods, this is the most straightforward method. Wholesalers use this option try to find out a buyer who has enough cash in hand to pay all at once and are ready to purchase a house immediately. If the wholesalers use this method, you would receive the total selling amount of the house in one hand and transfer the house ownership to buyer on the other. However, due to the recent economic crisis, it would be hard, if not impossible, for the wholesaler to find an average American family to be able to pay the large sum of money all at once. So it would be hard for the wholesaler and you to find a buyer who would give the full cash at one go.

Seller finance

Another feasible option that the wholesaler might exercise is seller finance. A wholesaler can arrange seller finance for you. Under this option you would act as a bank while selling your house. In the process of selling, you will earn some interest amount.

Most Americans do not have full cash in hand to pay for the house purchase, and therefore they require some sort of financial assistance. Being the seller of the house and also the financial assistant, you have the choice to give buyer the option to pay the purchase price of the house through a number of installments. If you opt for allowing the buyer to pay through installments, you are actually helping the buyer by reducing their burden and at the same time gaining yourself. The additional interest that you earn for allowing the buyers to make the payment in installments is an extra profit that you make.

In such seller finance method, there are several ways of receiving the payment. You can ask for ‘interest only payments’, ‘principal only payments’ or a combination of both. You will also have to decide whether to ask for a fixed rate interest payment or a variable rate. The wholesalers would be able to guide you in deciding which method you should use.

Subject to

You can also sell the house to prospective buyer "subject to" the existing financing. Subject to is one of the non-traditional methods of selling a real estate. In such method, the lender is not contacted; the institution that owes the money is contracted instead. Under this method the mortgage of the house stays in the sellers’ name, while the property is transferred to the name of the buyer. In other words by selling your house "subject to" existing mortgage means that the buyer do not assume the loan; you are still responsible to pay off the liability. This method transfers shifts self dependency to dependency on the investor to make the payments.

Options

The real estate wholesaler might advice you to offer the option method in selling your property. Here, you would enter into an agreement with a wholesaler or a buyer to sell the house for a specified price at a specified period of time. Normally when buyers feel that value of the houses will go up in future, they go for an option agreement. From the sellers’ perspective, you will know in advance that on a particular future date, your house would be sold at a predetermined price. You would receive an option consideration premium as well. You will be a gainer if the actual house price declines in the future, as you will be receiving a higher price as agreed earlier. However, there is a chance to lose if house prices rise in the future. You should consult thoroughly with your wholesaler before taking this option.

Lease-option

Lease option has become a popular investing program over the years. It in fact offers renters an option to purchase a house in a two-year period. By entering into a lease option, you are agreeing to sell the house at a later, pre-arranged date and price. And you would receive payments till transfer of ownership to the buyer. It means the buyer will be giving you payments (normally 5-10% higher than the usual rent) for the house over the two years – from starting of the agreement till the end date.

It is wise to consider all the methods available before choosing the one that best suits the situation. So think carefully and consult with the wholesaler before taking the decision. Good luck!