Even though real estate investing is not the typical get rich quick type of business, we can not deny the fact that there are people making pretty good money from real estate investment. One of the best real estate investment strategies to succeed in is wholesale real estate.
What is Wholesale Real estate?
Wholesale real estate investing is a real estate investment business model that involves buying a below-market property then quickly selling it to another investor without making repairs or improvements. By below market property, we mean any property sold below the market price.
So basically in simpler terms, Real estate wholesaling is taking a position between a seller and a buyer and profiting from an immediate resale of property without significant rehab or time of ownership.
Wholesaling is one of the most popular strategies for new real estate investors to get involved with because it can be done with limited funds and experience.
Is Wholesaling Brokering?
People mistake real estate wholesalers for brokers but they are not the same. While wholesalers purchase houses, takes the title of them and then sells them off to investors, retailers or other wholesalers, brokers are simply the mediators between the buyer and seller of the house.
Tips To Note To Be A Successful Real Estate Wholesaler
Finding Good Deals: As a real estate wholesaler, your job is to find good deals, this can be a challenge but it has to be done. Wholesaling real estate without a good deal is as impossible as being a great butcher without access to any meat.
With that in mind, your job is to find and control/purchase properties that are far enough below current market value that you can meet your buyers’ needs and still have room for profit in the middle.
For instance, If you’re selling to a flip investor, you’ll need to know enough about the costs of renovation and repair to be able to know that it can be rehabilitated and that the after repair value, will still be high enough for you and your buyer to make money.
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Networking Is Critical: To be a successful real estate wholesaler, there is need for you to network. You need to put yourself there and get exposed so as to build contacts. Good wholesale deals are not easy to find this is why you need to build contacts and network because some property deals might come through word of mouth.
Although Networking and accumulating contacts would take time and dedication it would pay off at the end. The more people you know in the business, the greater the chances that they may think of you the next time they have a specific deal. You should have business cards ready to hand out at all times. Some of the best contacts you make will often come from informal settings.
Convert Leads To Deals: Converting your leads to deals should be your priority as a real estate wholesaler. Talking to homeowners and getting leads is great but the profit comes when you convert the leads to deals. From what you say to what you do there is a need to carry the homeowner along and make him know what’s going on.
Until you get to the point that you know the right things to say to the homeowner, it’s okay to try and fail or make errors. With time, you would figure out a routine and a method of converting deals, wholesaling will become that much easier.
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