If you’re an aspiring entrepreneur ready to start your own business and turn a profit, wholesaling real estate could be an ideal way to get involved in the real estate industry and begin earning money.
Though wholesaling real estate can be challenging — especially if you’re new to the industry — it can also be lucrative. Keep reading to discover the benefits of wholesaling, how you can get started, and tools that you can leverage to ensure success in the real estate industry.
The Benefits of Wholesaling Real Estate
Many people see the real estate industry as an alluring way to start a new revenue stream or go into independent business. But why specialize in wholesaling? Wholesaling has distinct benefits that other areas of the real estate industry lack, such as the following.
Accessible Even with Limited Financial Resources
Many potential investors give up on their desire to invest in real estate because they lack the credit or financial backing to get started. However, wholesaling real estate circumvents this issue because you do not need to purchase the property. When you are wholesaling real estate, you assign the purchase contract to an end buyer, so they are the person that must undergo credit checks and complete the purchase. In the end, you simply facilitate the deal and keep any profit between the seller’s price and the buyer’s price, requiring very little up-front investment on your end.
Earn a High Profit in a Short Time Frame
Unlike buying an investment property or going into real estate development, which can require years of management or construction, wholesaling shows fast returns on your investment. In wholesaling, the money that you earn is referred to as a “finder’s fee,” which is the amount that you’re paid for connecting buyers and sellers with one another. When a buyer accepts your offer and the deal closes, you should receive your check in less than 45 days.
An Entry-Level Education About the Real Estate Industry
If you’re a beginner in the real estate industry, wholesaling is a wonderful place to start because it will fully immerse you in a new industry without the need for extensive education or certifications. You can learn about the negotiation process, legal documentation, and marketing on the job and in a relatively short time frame.
Getting Started in Real Estate Wholesaling
Wholesaling real estate has the potential to become a lucrative side hustle or a full-time business. Essentially, you will need to find suitable properties, then connect sellers and buyers. The money you earn from this process is referred to as a “finder’s fee,” and it’s a wonderful way to earn money in the real estate industry without using your own financial resources to purchase a property.
Finding Good Deals on Properties
The wholesaling process begins with finding sellers that are undervaluing their properties. To discern whether or not a property is undervalued — and, therefore, a good prospect — you will need to perform extensive market research and find out what similar homes sell for in a specific area. In wholesaling, we refer to this as “running the comps,” which refers to the real estate term “comparable sales.”
In order to find the right properties and sellers, you’ll need to market your services, which may include online advertising, hiring a team of cold callers, or sending out email offers. You can also try to find prospects by driving around and searching for neglected properties, though this is a more unpredictable, hit-or-miss approach.
Financial Resources for Wholesaling Real Estate
Unlike other forms of real estate investment, wholesaling doesn’t require a large upfront investment. At a minimum, it is recommended that you begin with about $2000. With this starting amount, you will be able to afford a consultation with a real estate lawyer, create a wholesale contract, and invest in marketing your new business.
Theoretically, you could start wholesaling with no money, but it is incredibly challenging to create a contract, then connect buyers and sellers with no additional assistance. Your primary expenses will go towards marketing, but you can easily scale these costs. The more effort you put into forming lead-generating partnerships, the easier it will be for you to attract the right buyers and sellers for quick growth.
Creating a Business Plan
As with any business, you need a well-thought-out plan to achieve your goals. Begin by defining the area in which you are interested in wholesaling. From there, decide what kind of properties will be most lucrative for you and how much these properties sell for. Then develop a marketing strategy that best suits your business.
In-depth business plans will also detail the pre-purchase procedure, which explains how you will conduct business with the seller, how to inspect the property, and when you will market the property to potential buyers. In addition, you’ll need to establish what your operating expenses will be and when you will earn back your initial investment. The more detailed your business plan is, the more likely it is that you will be successful.
Find Sellers and Buyers with Call Motivated Sellers
The most difficult part about starting a wholesaling business is finding buyers and sellers, so why not leave this to the experts? Once you’ve created a business plan, put your words into action with the assistance of Call Motivated Sellers. We’ll sort through buyers and sellers to find the best prospects, so you can focus on other aspects of your business. Our team of professional cold callers will vet leads for you while informing interested buyers and sellers about the benefits of your wholesaling services.
Call Motivated Sellers is an American-based real estate cold calling service that can help raise your sales and provide hot leads year-round. We have years of experience cold calling in the real estate industry, along with access to the best information for buyers, sellers, and agents to help you close more leads.
If you’re ready to leverage the power of cold calling, Call Motivated Sellers is here to help. To learn more about the services we offer, contact our team today, and let’s talk!
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