I am a Real Estate Investor, and have been for the past four years. I have a company called V.L.Rich Enterprises Inc, I first begin to study the actual process of becoming an Investor before I decided which direction I wanted to start. I looked at foreclosures, rehabs, as well as what many call buying pretty properties, which only means buying homes ready to move in. After reading many books and attending several different seminars, I learned that by far the most inexpensive way of learning the business was a system called Wholesaling.

What this system allows you to do is put a property under contract, which remember all real estate is transfered through contracts, and actually sell the contract to another buyer before the closing date. And how that works is let's say you own a home and you want to sell it for 100K, and it's appraised at 115K, now the reason you are selling it below market is that the economy is so bad, or you need to move very quickly, or it needs some repairs, there are many, many different reasons people either want or better yet need to sell.

Now what you need to focus on is that you are an Investor and you always want to think like one, by that I mean you want to get the best deal possible. One of the ways you do that is by talking to the owner and finding out what their motivation to sell really is. Once you have assessed, that then you want to purchase a property in the range of 65 to 70% of the appraised value. For instance if the seller wants to sell for 100K you need to offer 65 to 70K. And this is because once you market the property to another buyer you need to leave some wiggle room. Basically because you want to leave a profit for the new buyer, to see the benefit of buying the contract from you.

Always remember that the new buyer or the Investor you are going to sell to is probably going to be savvy so being smart they are going to want to make a lower offer, just to test the water and see exactly how flexible you are. This is however a business and it should always be treated as such. Now there are more moving parts to the actual transactions so stay tuned for more free and valuable information.