Wholesaling Homes.

Wholesaling is simply the process of “getting in the middle”. You put a property under contract and quickly “flip” the property to another buyer.

It’s arbitrage at it’s finest.

Definition of ‘Arbitrage’ – The simultaneous purchase and sale of an asset in order to profit from a difference in the price. There is an art to negotiating a good deal. A deal that’s good enough and deep enough so that you can make money and also allow your buyer to realize their own profits.

As a wholesaler, you are compensated for that “art”.  You act as a buyer of the property, negotiate your best deal, and once the property is under contract, you then offer the property to other investor buyers in the market.  Why would they buy from you? Simple. You’ve done all the hard work in their eyes. You found the deal, spent the time and money in doing so, put the property under contract, and now all they have to do is step in and take over your position.

These buyers can easily acquire your interest in the existing contract through an “Assignment” (unless your original purchase agreement states otherwise ie: Bank REOs).  You can also conduct what is called a simultaneous closing, back-to-back closing, double-closing, or double-escrow. These are all the same thing.

It simply means that on the same day that you close on your original purchase, you turn around and close on the sale – back-to-back.

Would the Federal Reserve Raise Rate?

In accordance to Jesse Solomon at CNN, "In minutes released from its June meeting, the central bank said that if the economy improves as it expects, its massive bond buying program will fully wind down following its meeting in October.  The Fed's intention to pull back, or "taper," its stimulus is a sign that it believes the economy is on the right track. That's the good news.

The bond purchases are only one measure helping to boost the economy, but the curtailment is being watched closely as a sign of when the Fed could raise interest rates. The Fed intends to be very clear and give plenty of signals about rate hikes, according to the minutes.  The Fed is currently buying $25 billion in monthly bonds, down from $85 billion last year.  The minutes indicate some of the top economists in America believe that activity will pick up in the second half of the year. The Fed did revise its GDP forecast for 2014 down from 2.3% to 2.1%, but many economists have pinned the decline on unusually severe winter weather.

The main question among Fed watchers is when the committee will raise its key federal funds rate, which currently stands between 0% and 0.25%. The minutes didn't give any solid dates, although the Fed tried to reassure the world that it will give a lot of signals well in advance of any rate hike.  "The June unemployment numbers were strong, but not strong enough to abandon course," says Ernest Cecilia, chief investment officer of Bryn Mawr Trust. "Janet Yellen wants to stay on message and be really clear. Any flip flopping will lead to a perception that the Fed doesn't have its act together."