So I know a lot of you, like myself, when I first started brand new to the real estate industry you get kind of lost with all the real estate lingo. “Wholesaling and Rehabbing homes? Huh??”
When I first heard the world “Wholesaling” homes, my first thought was, “Umm.. I guess that means that people buy homes in bulk, like you buy bulks of mayonnaise and ketchup like you would at Costco Wholesale.” Haha.. WRONG!
“Wholesaling” properties to put in simple terms, basically means to get a property that you don’t want or can’t close on and you negotiate it for a low/discounted price and maybe do some minor changes to the house then either sell the contract or the property for a higher amount. And when I say minor changes, I mean minor, like cutting the grass, cleaning up the kitchen counter tops, then taking amazing quality pictures of the property to create desire for a new investor or possibly a homeowner.
“Rehabbing” a home is buying a property that needs updates and repairs either structurally, interiorly, or both at a discounted amount and investing, time, and money to update and renovate the property. There are four main areas in the property that create the most value, and that would be, opening the layout, re-doing the kitchen, bathrooms, and updating the lighting. Kitchens will usually be the biggest bulk of your financial investment, bathrooms are the second, lighting then removing walls to have an open layout.
I hope this helps you on your successful journey into Wholesaling and Rehabbing homes, or just so you have a piece of mind on what the terms mean.
Until next time,
Lee & Linda