Here are several reliable ways to create a buyers list for wholesaling in Philly: If you’re new to real estate, you’re probably wondering how to build a buyers list. Before you have a deal under contract, you should build a list of cash buyers who are hungry for deals. Creating a buyers list is the key to successfully assigning a contract to an investor. You can’t wholesale a house in Philly without an end buyer. Now that we’ve explained the two wholesaling strategies (assignment and double close) and also walked you through how to apply for your wholesaler license, it’s time to start your business. Wholesale Real Estate in Philadelphia: 4-Step Process Become compliant with all City of Philadelphia taxesįrom here, you’re ready to submit your application! You can apply for your Philadelphia wholesaler license on eClipse.Certificate of Insurance ($1,000,000 general liability insurance).The city of Philadelphia will also ask for: However, getting your property wholesaler license in Philadelphia will keep you out of trouble moving forward. Yes, it’s frustrating to jump through all of these hoops. The city asks for a few other items for you to supply when applying. Other Requirements for Wholesale License Application Once you have one of those, along with your BIRT, you can apply for a wholesale real estate license. Next is your commercial activity license. This is so that the City of Brotherly Love can collect their taxes when you wholesale a property. This first item is a Business Income and Receipts Tax ID (BIRT). There are two things you’ll need before applying for a residential property wholesaler license in Philadelphia. How to Get a Property Wholesaler License in Philly Business Income and Receipts Tax ID (BIRT) You could get slapped with fines and end up with big issues. If you don’t get a license and try to wholesale a property in Philly, someone could report you. To legally wholesale real estate in Philadelphia PA, you need a license. You Need a License to Wholesale Real Estate in Philadelphia You’ll need legitimate money to wholesale real estate in Philadelphia through this strategy. Double closing on a house in Philly makes sense depending on the situation. In this instance, you would be on the title (deed) of the property. The double close in wholesaling is when you actually purchase the property yourself for a short time period. This wholesaling strategy is why it gets advertised as “no money down”, since you don’t pay anything out of pocket at closing. When trying to wholesale a house through an assignment in Philadelphia, your name is not on the title of the property. The monetary difference between the two contracts is your ‘spread’, or wholesale fee. You are assigning the contract in this circumstance. Ideally, you sign the initial agreement of sale for a lower amount than what the end buyer is willing to pay for it. This is executed by signing an assignment contract with the cash buyer. Then, you find a cash buyer in Philly that you assign the contract to. Wholesale AssignmentĪ wholesale assignment is when you sign an agreement of sale with the seller that is assignable. There are two different ways to wholesale a house in Philadelphia PA: 1. People who wholesale real estate in Philly fill a need. Sellers needed quick ways to get rid of their properties that were either underwater from unpaid water bills or occupied by squatters. How many times have you heard that shouted down the sidewalks of Broad Street? The strategy became very popular in Philly because of the large amount of cheap, vacant properties and lots. “You can wholesale real estate in Philadelphia with no money down!” Online real estate gurus popularized this real estate strategy because there’s a low barrier to entry. Many call wholesaling properties “ house flipping”. Wholesaling real estate is the act of buying and selling a property within the same transaction. In this 2024 guide, we review how to wholesale real estate in Philadelphia PA through assignment contracts. Although these new barriers exist, it’s still possible to successfully wholesale a property here. These are uncharted waters for real estate professionals trying to wholesale houses in the City of Brotherly Love. Starting in January 2021, you legally need a Residential Property Wholesaler License in Philly if your business buys residential properties solely to resell them. Learning how to wholesale real estate in Philadelphia PA just got harder. How to Wholesale Real Estate in Philadelphia: 2024 Guide
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