Real estate investments are a great way to earn extra money. Whether you’re planning to flip a property or turn it into a rental, you can create a solid income for yourself.
However, the process can be challenging to navigate and often comes at a high cost. Buying and selling a house usually takes time. First, there’s the matter of saving up for a down payment, obtaining funding, doing all of the necessary paperwork, and finally closing. Not to mention the amount of time you’ll spend negotiating with tenants and collecting rent.
Real estate investors often use wholesaling to sell houses without first needing to purchase them. The way it works is investors contract with a seller and before the contract closes they find someone to purchase the property at a higher price than the initial contract. The investor is essentially working as the middle man between a seller and a buyer.
Usually, houses that are in the wholesale market are in need of a renovation. More often than not, the seller is concerned they won’t be able to find a buyer and they don’t have the money to do the work. A wholesaler provides a solution to the seller and makes a profit in the process.
Let’s look at 7 compelling reasons that you should invest in wholesale properties.
1. Monetary Investments Aren’t Needed
The fact that wholesaling real estate property does not require a cash investment is the number one reason why a real estate investor should consider it. There are no credit checks, down payments, or annual mortgage payments to think about. Saving a large sum of money and avoiding loans is one of the most challenging obstacles to overcome when purchasing a real estate investment. With wholesale real estate, you don’t have to!
2. Profits from Wholesaling Come Quickly
New real estate investors are drawn to wholesaling because it allows them to benefit quickly from their investments. When you have the property under contract, a wholesale deal for a house will take anywhere from two to six weeks to complete. There are, however, some transactions that can go through much more quickly. A deal can be completed in a matter of days or even hours!
This makes wholesaling perfect for first-time real estate investors or someone with a full-time job who wants to get into real estate. If you understand the wholesaling process, you can get started right away.
3. Location, Credit, and Cash are Not Restricted
There are no prerequisites to begin your wholesale business. A cash down payment and good credit aren’t required. The main reason you don’t need a license for wholesaling is that you’re not really purchasing anything; instead, you’re merely linking buyers and sellers and profiting in the center.
You can also skip the process of establishing a business location. A computer and a phone are usually enough to close a deal. This saves money on office rent and allows you to work from anywhere.
4. Low-Risk, High-Value Experience
Wholesaling is a perfect way to get your real estate career started. The open market’s low entry barrier makes it an ideal place for you to measure the market’s effectiveness. You can also get better pay and other benefits with almost no risk. You are not wasting your own money, and you are not directly purchasing or selling anything.
This allows you to make more confident decisions and concentrate on the contract rather than the risk of failing. Wholesaling is one of the cheapest ways to start or maintain a real estate company, whether you have a new business or an older one struggling to stay afloat.
5. Larger Paychecks and Higher Returns
While other approaches can allow you to make more money over a more extended period, wholesaling will provide significant payouts as soon as the transaction is completed. You don’t have to wait for a renovation to be completed or the new house to sell. There’s no stress surrounding rent payments or costly rental damages.
With no money down, the return is incredible. Plus you get paid as soon as the sale goes through. It’s a win-win.
6. Time Freedom
As a good real estate wholesaler, you have the advantage of being your own boss and setting your own hours. You don’t have to worry about getting fired or sucking up to management. You’re in charge, and you’re rewarded for your hard work. Plus, you are not bound to an hourly rate. In a typical corporate career, this is nearly impossible!
Unlike other real estate investments, you don’t have to worry about a time-consuming renovation or managing tenants in multiple properties. While flipping a property can yield a great return, you have to expend a lot of time and effort to get to that point. Rental properties are great for residual income but they require constant upkeep, maintenance, and resident management.
With wholesale property investment, you can clear your calendar of renovations and rental maintenance and spend your time and money on things you enjoy like your family, home, and hobbies.
7. Simple to Learn
It’s easy to incorporate wholesaling into your real estate company, particularly if you’re just starting. Other investing strategies frequently necessitate some level of capital and preparation. On the other hand, wholesaling can be very easy to learn and is a perfect way to begin your real estate career.
Although most investment methods necessitate some level of education, wholesaling does not. You don’t need to know how to renovate or repair buildings. A network of buyers and sellers is all you need. This can be achieved quickly and conveniently on social media without leaving your home.
It’s also one of the few investment strategies that’s easy to understand and execute. All it takes is a little research. You’ll have to figure out how to bid, what to put in your contract, and what fees to include. Once you have those details ironed out, you’re well on your way to your new real estate career in wholesaling.
Call Motivated Sellers
Are you ready to start your career as a real estate wholesaler? All you need is a passion for real estate, great people skills, and a positive attitude. When you’ve got that, Call Motivated Sellers is here to help you find buyers and connect you with ready-to-buy leads. Our team of cold calling experts can vet your list of qualified leads and offer guidance on your process.
Are you interested in working together? Contact our team today!
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