What’s Wholesale Real Estate & how does it Works?

01 July, 2019

Wholesale real estate is referred to a property that’s priced below market value. Foreclosed homes are always considered as wholesale while reason for such insignificant cost is involvement of banks. Usually, purpose of banks isn’t to sell a home which is why they want to get it done as quickly as possible and dropping the cost seems only way possible. When compared with exact real estate market, you’ll find these wholesale properties quite lucrative and easy on your pocket.

Wholesale Real Estate

Advantages & Precautions

The biggest benefit for prospective investors is huge savings. When buying such homes, you’ll actually save around 30 percent of the original price. This in result would gain you instant equity or why not flip the property for profit! Property flipping refers to selling a home at higher cost after initial purchase although major repairs are a must.

Perform extensive research! Whether buying at wholesale or at original cost, it’s not a matter of few bucks. Home must be in appropriate condition, ensure it doesn’t require too much repairs that accumulate a higher price. Furthermore, obtaining finance can be troublesome on a foreclosed home and you’ve to approve around five to ten percent for purchasing.

Also, buyer must pay overdue taxes in-order to take full possession of assets still, it’s advised never to disburse upfront fee to attend a wholesale property auction. It’s a usually a public event and highest bidder claims ownership!

Duration of Process Period

Around 30 to 45 days are required to close collaterals on wholesale homes but it all depends on payment. If you’ve already paid direct cash, process would wind up in just 15 to 20 days and even sooner. Auction campaign persists for nearly two days, once every month!

Matters to Consider

Before buying, it’s important to consider a few things such as foreclosed properties are mostly dumped by previous owners. Why owner would trash his property is the first question! Is it illegal or situated in hazardous area? Were the taxes unpaid or any other reason! These are serious matters that mustn’t be taken lightly as your valuable investment is at stake.

Carefully explore every nook and cranny of the house for possible repairs and replacement. Inspection dates are announced when auction initiates so keep your ears open! Hire services of a home inspector for accurate advice and let him estimate the accumulated cost and add it to buying price.


On the contrary, wholesale real estate is important for several reasons. In every society, there’re people who couldn’t afford luxuries especially when it comes to find shelter. This is the best opportunity to get their hands on a home but come prepare with cash-in-hand. As realty market fluctuates quite often, you can invest at a low price and sell further on profit!


Why Use AMPI?

AMPI is the national association of real estate professionals that have, since 1956, gathered under laws and codes of ethics and conduct to create a reliable, trustworthy an efficient real estate environment in Mexico.

AMPI consists of separate autonomous sections all throughout the nation, as well as more than 4,000 associates and affiliates.

Each section is independent and has its own board of directors, only surpassed by a national board of directors comprised of twenty associates from all over the republic.

Developed over the years with the

input and knowledge of its members, AMPI is much more than just a collection of offices.

AMPI has been a solid and recognized institution in Mexico for the past 27 years. It was originally established in 1956 and was consolidated in 1980.

AMPI is currently represented in all the principle cities and regions of Mexico stretching from Tijuana to Cancun.

The Riviera Nayarita, Vallarta and Compostela chapters of AMPI are dedicated to promote the best practices in real estate by providing its members with education to reinforce the standards of ethics that give our industry the credibility which our clients deserve.

AMPI is committed to giving our membership access to a multiple listing service that forms the platform from which our industry can expand locally and into other markets while giving our members precise and up to date information that is vital to continuous improvement and growth.

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