Wholesale real estate is a flourishing market, though people in some areas have no idea that this concept is legal, ethical or practical. But the bottom line is there’s nothing at all wrong about taking advantage of a good deal when you see one, and wholesale real estate investing is nothing more than making the most of a favorable situation.

Here’s a basic rundown of how wholesale real estate buying works. A property owner has a house that he’s anxious to move, and that house is listed below fair market value. Remember that the appraised value of a house is the amount that a “willing buyer will pay a willing seller on an open market.” The definition doesn’t say anything about an “anxious seller.” That anxious seller is willing to take less and probably advertises for less hoping for a quick sale. Enter the whole real estate investor.

Regardless of the reason for the situation, the seller wants to move the property immediately – creating the ideal situation for a wholesale real estate investor. It could be that the family has moved to another city. An older person may have moved closer to children or to a nursing home, or even died. It may be a case of a property owner who is desperate for instant cash. Any of these conditions results in an ideal wholesale real estate market.

You, as a wholesale real estate investor, see the property for what it is and make an offer. Once under contract, your work really begins because then it’s time for you to market the property.

For wholesale real estate deals to work out successfully, you have to be prepared for a lot of things. The property may need some minor repairs in order to get that market price. Having a network of contractors who are willing to be available quickly is important. But keep in mind that your efforts to wholesale real estate aren’t usually going to be centered around the average house buyer. Marketing the house to the general public is an option when you wholesale real estate, but finding that person who’s looking for that property may not be the fastest way to get that house sold.

It seems that the mistake many people make as they seek to wholesale real estate is that they’re looking to buy the cheapest property imaginable and turn that around at market value. The fact is, there are few people selling their property who aren’t aware that their property is worth something. While some may simply not know the full market value of the house, most will look into it before they put the house up for sale. The bottom line is that property being offered for sale at a fraction of its true worth is not going to come along often – certainly not often enough for the wholesale real estate buyer to make a living from those opportunities.

Instead of trying to make one or two million dollar deals, most who wholesale real estate say the smart thing is to aim for a smaller profit on multiple properties. It seems to be sort of like the old adage of “not putting your eggs all in one basket.” In addition, you need to realize that you – as a wholesale real estate investor – are going to make a decent profit even if there’s only a five percent difference between the price you pay for the property and the price you wholesale it for.