Real Estate Wholesaling contrary to the common concept of wholesaling:
Real estate wholesaling is a business strategy investors utilize to generate a higher return on investment. Contrary to the popular belief, real estate wholesaling has nothing to do with retail wholesaling.
In retail wholesaling, the wholesaler sells a large number of products to a retailer, who creates a new packaging and sells it to consumers at an additional price. Because of the volume, the retailer gets a lower price than what the common consumers get.
In real estate this strategy is to contract a home—usually, one that is distressed—with a seller, shop that home around to prospective buyers, and then assign the contract to one of them.
This means no money exchanges hands between the wholesaler and the seller, not at least until a buyer is found by the wholesaler.