Source: Investopedia —
Investing in real estate is nothing like investing in stocks and bonds. With the latter two, depending on the type of investment, you may be able to dive right in with perhaps as little as $100. You can exit whenever you wish. It’s not that easy when you’re dealing with real estate. In fact, real estate transactions can be tricky to navigate and they often come with a hefty price tag.
What’s more, it takes time to buy and sell homes. First, there’s the issue of the down payment. You also need financing for what your down payment doesn’t cover. You must fill out all kinds of paperwork. Then, there’s the closing, not to mention the time required to deal with tenants and collect rent.
If you really want to invest in real estate, but can’t bear the thought of all the money involved and going through the purchase process, you have options. Wholesale real estate is one of them. It’s a legal strategy concerning the purchase of real estate that you don’t commit to buying yourself or make a down payment on.
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