Wholesaling real estate can be lucrative but requires upfront costs and legal caution.
Do Your Homework and Build a Reliable Network
Your downside here is tied to bad deals and legal headaches.
- Research local real estate laws to avoid contracts that can backfire.
- Build a network of buyers and sellers to reduce the chance of being stuck with a property.
- Use contingency clauses in contracts to protect your deposit if the deal falls through.
Never Overcommit Financially
Don’t tie up your cash or credit on properties you can’t move quickly.
- Use earnest money deposits wisely and negotiate low deposits.
- Have backup buyers before locking in deals.
- Maintain an emergency fund to cover unexpected costs.