Wholesale properties are the type of property purchased by investors often to rehab and add value. Wholesale properties are sold by real estate wholesalers that do not sell to retail homeowners. New Western Acquisitions operates specifically in a wholesale market and does not provide properties to retail buyers.
After acquiring an investment home from the wholesaler, the investor then rehabs the property with the intention to resell it to a homeowner in the retail market or to rent it out. Buying a property at wholesale can be thought of as the risk/reward middle ground between the purchase of a property directly on the MLS and buying a property at a foreclosure auction. In most instances, buying a wholesale property is a higher risk than purchasing from the retail MLS since there is no inspection period. However, the property takes much less effort to sell and earns a much better price through a more efficient process. ]
At the other end of the spectrum is the foreclosure auction. Which, although these may represent the largest returns, auctions are usually beneficial for only heavily experienced investors. Unlike wholesale properties, bidders do not have access to the interior of the property before the auction and must pay cash within minutes of the sale.