Wholesale real estate investing has been a hot topic for quite some time now. Wholesale real estate is a real estate investment model where investors purchase below-market property, then rapidly selling it to another investor. Although the return is typically less than if you were to flip the home, you still receive a finder’s fee. The key to being successful is finding a good deal so that you can find an end buyer.
In most wholesale real estate deals, the motivated seller wants out of their home and you’re here to make that possible. You help the motivated seller out of their home and you get a deal from it.
Here’s how you can get started with a wholesale real estate business:
Find A Deal
This first step is usually the most challenging. Finding a deal is harder than it looks. Sure it’s easy to find people that want to sell their homes, but it has to work for both you and the investor on the other end of the deal.
With that being said, it might be in your best interest to find a team that could help you find leads.
At Call Motivated Sellers, we help you find those good deals. Our team of cold calling experts searches for motivated sellers who want to get rid of their property. Once we find a good deal, we send them your way and you finish the deal!
With our help, you quickly grow your real estate business without going through the challenges.
Fund Your Purchase Contract
Like any other business, it takes money to make money. Now, you don’t need hundreds of thousands of dollars, but you will need money to make the deposit and close on the home. Before jumping into the business, make sure you do have some cash whether it’s from savings or funds from a self-directed IRA. You should always consider using your own savings first, but if it’s a deal you can’t pass up, you can always use a lender.
Connect With An Investor-Buyer
Now, you might think you know of some investors who are interested in working with you, but you would be surprised to find out who actually has the funds to follow up.
The best advice we can give you to find the right investor-buyer is to find a good deal that the investors can’t pass up. This means that the property must have a good, honest value. If the property has a good value, you won’t have any problem finding the right investors.
Find Your Network
In order to be successful with your wholesale real estate business, you must be able to move from one deal to the next as quickly as possible. Before jumping into the business, build your network of buyers. You could have the best deals out there with the most attractive properties, but if you don’t have an investor to buy the deal from you, you will be left with the property.
Have A Sales Strategy
Anyone can get into the wholesale real estate business. But without a sales strategy, you will not be successful. Before getting into a deal, make sure you have a sales strategy in place. Here are some ideas:
Utilize Listing Sites
Sites like Zillow or Realtor.com are extremely helpful for real estate investors. You can connect with a seller who has had their property on the market for a while and, at this point, they are just ready to sell it to anyone who is willing to buy it.
Sites outside of Listing
You might be surprised to learn that many wholesalers discover properties through sites like Craigslist. When conducting your search, use keywords like “fixer-upper.” You might come across sellers who are motivated to sell their home without the help of a Realtor.
Social media has also become a great tool for real estate buyers. Many people share homes that they are no longer living in and need to get rid of. You can find some great homes on Facebook! We suggest joining local Facebook groups in your area.
Once you have found a good deal and negotiated with the seller, the clock is ticking to find a buyer. Here are some tips to help you find an investment buyer:
We Buy Houses Signs
If you do some driving, especially in a big metropolitan area, chances are you will come across a sign that says, “we buy houses.” “On that sign, there is a number on it. When you call that number, you will be connected to a buyer who is ready to make a purchase! Next time you come across that sign, take their number down and give them a call!
Network At Foreclosures
Foreclosures are a great way to meet investors. Investors know that these properties are below market price and these homes can be flipped and sold at a higher price. If you start hanging around foreclosures, you will get to meet investors in your area that you can partner with.
Some buyers can even be found in newspapers, local magazines, or local billboards. Do some searching in your local area and you will more than likely come across an interested buyer!
It’s important to note that building relationships with sellers and investors is a key element in your success as a wholesaler. You will want to build strong relationships with motivated sellers so that you can get a great deal. And on the other hand, you will want good relationships with investors so that you can understand what they want out of the deal, as many investors are looking for different qualities in properties.
Call Motivated Sellers: Starting Your Business Off Strong
Are you interested in the wholesale real estate industry? You must know that it’s challenging, but it doesn’t have to be! At Call Motivated Sellers, we will help to find you the best properties out there so you can get the best deals!
Ready to start your business off strong? Give our team at Call Motivated Sellers a call!