How Can I Start Wholesaling Real Estate?
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Investors who are willing and ready to learn about wholesaling houses will surely be excited to know that the process of doing it is not complicated at all. So check out these simple steps for you to get started and take action NOW.
- Conduct quick research in the market you are interested in doing wholesale real estate. It’ll give you an idea of the current demand in a particular location, and you will know the existing trend among the other competitors. Besides that, make sure to familiarize yourself with the process of wholesaling houses by doing your research and even getting in touch with some real estate investors who have been doing it for years to learn some tips to make your wholesaling journey a great success.
- Work on your buyer's list in your chosen market. It’ll be a helpful idea if you get a buyers list in a particular location where you want to start your wholesaling career. When you do this even before you start looking for your first wholesale deal you will have confidence knowing you have cash buyers at the ready when you land a contract. You have to know a place where you can find your prospective buyers before securing houses that you can put under contract. Always remember that when you already have a buyers list like I do, it’ll give you an idea of where you can find deals moving forward.
- Secure funds that you’re willing to use for purchasing a contract. Since we are talking about wholesale real estate you won’t need much funds if any at all. You will be finding a house to put under contract and assigning that contract to your investor cash buyer. Some sellers may ask for earnest money and to make a contract legal all we have to give them is $10. Yes that’s only Ten Dollars. If you're dealing with an agent they’ll request 1% of the purchase proof but we’re dealing with off-market properties so $10 should Suffice unless the seller asks for more. In that case, stick to 1% or less.
- Start searching for wholesaling properties. Once you’ve already chosen the market to begin your wholesaling career and you have already secured enough funds or cash buyers, you’re now ready to find potential sellers who want to dispose of their houses. One of the perfect market areas to start your search is where you can find distressed properties. Owners of these properties are usually eager to get rid of their houses, and that will give you an excellent opportunity to close a deal with your potential buyer. Besides that, you can also use various real estate sites online to help you filter your search and make it easier for you to find one.
- Determine the most effective strategy to close the wholesale deals that work best for you. If you are a real estate wholesaler, there are a few ways to earn a profit from closing deals. You can execute a double closing, or you can sell the property under contract. So if you want to sell the house under contract, you can simply match up those sellers you’ve found with your potential buyers and profit from the difference between your purchase price and your selling price.
On the other hand, if you also want to execute a double closing, you will take possession of the house and shoulder all expenses associated with marketing and closing the said property. Doing so will make you use a double closing when you find a potential buyer who is willing to pay a higher price for the property you’re selling, which will surely give you more profits.
Takeaway
If you are interested in venturing into more opportunities waiting for you in real estate wholesaling, always remember the things discussed above. As long as you completely understand how this wholesaling works in the market and you’re willing to spare your time and exert your effort to learn more about it, you’ll never know what massive success is waiting for you in the long run.
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