Wholesaling real estate is a short-term investing strategy that offers a quick way to make a profit and build your portfolio. Wholesaling real estate is a also great way for new investors to break into real estate investing.
For real estate investing women, this is a wonderful strategy to earn money with lower risks and pave the road to real estate investing success. In fact, as a woman in real estate, wholesaling is a great way to use your network to connect buyers and sellers so that everyone sees the results they desire.
Benefits of Wholesale Real Estate Investing
- Quick turnaround time
- Build the depth of your investing portfolio
- No need to take possession of the property
- Great opportunity for beginners to learn and enter the market
- Quick cash – like a personal “ATM” for real estate investing
- Usually no money down required
What is Wholesale Real Estate Investing
Wholesale real estate investing is when the investor agrees to a real estate contract but then finds a different buyer to take over the contract. The primary difference with wholesale real estate investing versus other types of investments is that the investor doesn’t actually take ownership of the property.
Unlike with flipping a house, the risk to the investor is low. The investor is instead flipping the contract, where the goal is simply to find a buyer for a property before the contract close date. The investor makes money when the buyer agrees to pay more than the original contracted amount.
How Wholesale Real Estate Investing Works
Wholesale real estate investing works by the wholesaler finding sellers that need to sell a property but don’t want to go through a traditional real estate agent. The wholesaler enters a contract with the seller to purchase a property. The wholesaler then works to find a buyer. Once a buyer is found, the purchase contract is assigned to that new buyer. This is how the wholesaler avoids ever actually owning the property.
The benefit for the seller is that the wholesaler uses network connections to locate a buyer. In order to make a profit, the wholesaler must find a buyer to purchase the property for a higher price than the contracted amount with the seller. The profit is the difference between the original contract price and the buyer’s price.
When wholesaling real estate is done effectively, the investor can make money quickly. The key is to understand the details of the process and to know how to find a buyer.
How to Find a Buyer for Wholesale Real Estate
For beginner real estate investors, the most intimidating part of the process is knowing how to find buyers. After all, you don’t want to get stuck in a contract with a seller if you are unable to produce a buyer. The good news is that there are a variety of ways to locate potential buyers.
The best tool you can develop as a real estate investor is a buyers list. This is where networking within the industry is crucial for success. When you have trusted connections within the real estate investing industry, it’s easier to locate both sellers and buyers.
There are many ways to create a buyers list. First, you can simply pay for a list of potential buyers in your area; however, for most investors this isn’t the best or most affordable tool. Instead, spend the time to solicit buyers yourself. You will have better qualified leads and more personal connections.
Direct mail or email marketing are great tools to link with potential buyers and build your buyers list. A website with quality content is another way to generate leads. Social media also works well to promote your real estate investing business and connect with buyers. Finally, Craigslist also works to locate buyers. Overall, the key is to spend the time upfront to develop a list of potential buyers so that your turnaround time will move more quickly once you enter a wholesale contract.
Be Smart by Focusing on the Details
As with any investing strategy, wholesaling real estate does require knowledge of the process for success. Tap into your network of real estate professionals to ensure all the details are properly managed. Work with a real estate attorney to make sure the contract with the seller and buyer is accurate and protects your interests.
Also, a title company is your best friend in real estate investment. The job of a title company is to ensure that the property is clear of any liens. The best way to handle any real estate transaction is through a title company. This helps protect everyone’s piece of the deal and peace of mind.
Not only does handling the details accurately protect your legal and financial risks, it also helps protect your reputation. In the real estate investing business, your success is tied to an established and trustworthy reputation. You’ll have better network connections and more investment opportunities if others in the business trust you.
Invest in Your Industry Knowledge for Success
Understanding the process for wholesale real estate and networking within the real estate investing space is critical to your success. A variety of training opportunities are available to build your knowledge of the industry. Work with an experienced real estate investing coach, and take advantage of the many tools and opportunities available, like webinars, blogs, videos, group training, events and seminars.
To get started on the path to real estate investing success, sign up for a discovery call with the real estate investing experts at Laura Alamery Real Estate Investing. Wholesale real estate is a great way to make money and build your real estate investment business.