Finance Friday: Wholesaling houses for easy income

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(NewsNation Now) — On this Finance Friday, money guru Ryan Pineda spoke to Adrienne Bankert about wholesaling houses.

You’ve seen the house flipping shows, where someone buys a $200,000 house, fixes it up and then sells it for a handsome profit. If you’re not possessed of construction skills or just don’t want to go through the mess and hassle of that sort of work, you could try your hand at wholesaling houses.

First, you’ll have to find investors looking for properties to buy. Then, you’ll have to find properties up for sale that you can put under contract. Ideally, these will be “scratch and dent” houses that need some work and are valued lower than similar houses in their area.

After that, it’s a matter of matching the home to the investor, selling the home for more than the contract value and pocketing the difference. There is risk involved, so do your homework and learn more about the business before you get your feet wet, but done right this can be a good source of income.

In the current real estate market, wholesaling is tough, since houses of all types are selling almost as soon as they hit the market, but those conditions won’t last forever and that’s when wholesalers really make money. For now, the foreclosure lists at your local county courthouse are a good place to start hunting.

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