“Wholesaling” is a newer term when it comes to real estate investing. Originally it was called “flipping the contract.” The first wholesale I did was in 1991, when I flipped a contract on a property I was buying for myself and I made $75,000. I instantly fell in love with flipping contracts or wholesaling.
I was fortunate that when I started my real estate investing career in 1987, I worked as an agent in an office with 75 real estate agents and 74 were women. The owner simply believed that women were natural at real estate investing and could be successful by tapping in some of the natural and innate traits unique to women.
Why Women Are Great Real Estate Investors
Women are “Naturals”
Women are natural at really listening and being problem solvers. They have the capacity to focus, analyze the task at hand and take action. They also don’t let their ego get in the way and they can spot opportunities.
Women are Nurturers
Over the years I found out that many successful real estate investors, who are women, had been teachers, nurses or social workers in their past profession. Wisdom and empathy are necessary if you want to separate yourself from the masses of real estate investors, and women tend to have those innate qualities.
Women are Advocates
Women enjoy being in businesses with a cause or purpose other than just financial reward. They feel a need and accomplishment by helping not only their own families, but members of their community.
Networking, creating win-win situations and relationships, extending inclusivity to different social groups: women generally thrive in social endeavors.
Also women don’t see competition, but more like sisterhood: they do want to see other women succeed.
The process of wholesaling houses combined with the innate qualities that women possess becomes much easier and enjoyable.
Just imagine. Trust your gut feeling. Be willing to help and listen. Create win-win situations. And combine all these qualities with a tested process, and you become unstoppable.
As far as the 7 steps to wholesaling houses:
1. Choose the Right Area First – some markets are more saturated and competitive than others. Plus sellers can be more difficult to work with. So choosing the right area and tapping into the market behind the curve can definitely help you jumpstart your wholesaling business.
2. Locate Off Market Properties – the skill to be really successful as a wholesaler is to find off market properties (not listed by an agent.) You are looking for “don’t wanters,” owners who are going through some life situation where they need to sell, not want to sell.
3. Find Ready and Qualified Buyers – it’s a sellers market. You as a wholesaler have the upper hand since you are dealing with sellers and have the exclusivity of putting deals under contract (hence becoming an owner per contract.) You can be selective in choosing the right and qualified buyers.
4. Analyze Deals – there are a lot of misconceptions and wrong ways to analyze deals for wholesaling. The “rule of 70” is one of them. Don’t use it. Look at the true value of the property, market conditions in the area and demand. By structuring the offer to the seller in a more dynamic way and tailored to the area, you will be able to do a lot more deals.
5. Submit a Contract – it might seem redundant, but I cannot stress enough how many times I see investors freeze and never do this important step. Writing a contract with the right loophole contingencies that let you renegotiate or back out of the deal if you don’t have a buyer will take away this fear and uncertainty. You should write at least 3-5 contracts a week. Send a contract even if you are not sure if the owner is going to consider it. You will be surprised by their response more often than not.
6. Due Diligence – don’t put yourself in a corner. Make sure you structure the right contract, create a win-win situation and follow your gut feeling. If an owner is being too difficult, he/she does not resonate with you or a buyer is being too aggressive, walk away. It’s not worth it and it will create more problems in the long run.
7. Create a System – wholesaling is a numbers’ game. Also one of the appealing factors of wholesaling is the fact that it can be done virtually anywhere from anywhere. Creating a system to process leads automatically and virtually is the ultimate real estate investing model.
Taking action combined with following your woman’s natural gifts and intuition is truly all it takes to become a successful real estate investor.
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Closing a Wholesale Deal in 3 Weeks.