There are plenty of ways to invest in real estate, but some investors aren’t interested in owning property directly. Although investors have the option to invest in REITs, there are more efficient ways to invest in real estate, like wholesaling.
Wholesaling real estate is one of the easiest ways to invest in real estate. You can get started without a real estate license or the vast amounts of cash necessary to purchase a property. All you’ll need to do is master the art of connecting buyers and sellers. Although the concept is quite simple, earning a sizable profit requires careful strategy, solid marketing campaigns, and the patience to build a business from the ground up. So if you’re interested in getting involved, here’s how to wholesale real estate in the 2020s.
Create a Buyers List
Before you officially begin your real estate wholesale business, you must create a cohesive buyers list. Essentially, a wholesale buyers list is a catalog of potential buyers who may be interested in purchasing a wholesale contract from your business. A solid wholesale buyers list is one of the most important tools to support your company as it expands, acting as a springboard to ensure that each transaction is as profitable and efficient as possible.
Enact the following strategies to build a lucrative buyers list:
- Contact “For Rent” Property Owners. The best place to start is by contacting property owners who have a property listed for sale or rent. Build your list by calling property owners directly or sending emails to potential leads.
- Connect with Personal Contacts. You may already know more cash buyers than you initially thought. If you know anyone who appears interested in the real estate industry, don’t hesitate to contact them. It may also be beneficial to post on social media sites about your up-and-coming business. Reach out to realtors, your accountant, financial planners, or anyone you know who is ready to invest in real estate.
- Join Local Real Estate Groups. In the real estate industry, who you know is of the utmost importance. Consider joining a real estate group or investing club to expand your network. Ask every lead about their preferences, including price range, location, and the property’s condition. A lucrative opportunity can pop up in the most unlikely places.
Acquire Starting Capital
Most real estate investors are drawn to the wholesaling industry when they realize the low amount of starting capital necessary to build a highly successful business. However, you’ll still need a fair amount of money to ensure operations run smoothly. Since you won’t need to buy the property outright, it is unlikely that you will need external funding. If you’re not interested in spending your personal funds, consider obtaining a traditional loan from a bank.
Most of your funds will go towards marketing campaigns when you’re starting. Remember, the amount you earn from each contract depends on the cost at which you obtain the contract and the amount you can sell it. Your profit will increase as your marketing efforts allow you to gain better contracts. With this in mind, most wholesalers won’t need more than $10,000 to start. Although it’s possible to start with less, doing so could make it challenging to sustain your business in the early stages.
Expand Your Network
Beginner wholesalers must leverage every resource at their disposal to contact as many qualified leads as possible. Essentially, this means connecting with the audience using digital and traditional means. With this strategy, you can connect with a diverse pool of leads using their preferred method of contact.
You can connect with some leads online by leveraging targeted ads and search engine optimization to drive traffic toward your website. However, the internet is a big place. If you’re trying to build a network locally, it can be even more beneficial to leverage the personal touch of traditional methods like cold calling.
Form a lead-generating partnership with professional cold callers who will take the time to learn about your wholesaling business and the types of leads you would like to attract. From there, they will craft a script explaining your company’s benefits. Unlike other forms of marketing, cold callers can build real relationships with potential buyers and sellers, helping your new business stand out amongst competitors and attract high-quality leads.
Connect Properties with the Right Buyers
Once you find the right seller, it’s time to connect with buyers. This is where your buyers list will come in handy. You can use this list to find buyers who may be interested in the contract you’re selling. It is also recommended that you create a comparable properties list so that it’s easier to offer buyers a fair price. A comparable properties list, also known as a comps list, is a list of properties in the same area. You can use this information to create an accurate property valuation.
Once you agree upon the price with a buyer, you’re ready to assign the contract to them. Both you and the buyer must agree on the deposit amount and the assignment fee. Basically, this step confirms that the buyer is purchasing the property, and your wholesale real estate business collects the difference between the purchase and sale prices. At closing time, all you need to do is be there to ensure that the process proceeds as planned. When the title company confirms the transaction, you’ll receive your payment.
Start Your Wholesale Real Estate Business with Call Motivated Sellers
Wholesale real estate is a great way to earn revenue in the 2020s. To start building your network, acquiring properties for your portfolio, and turning a profit, enlist the assistance of Call Motivated Sellers. Our team of professional cold callers saves you time and effort by vetting leads for your team.
Let us inform interested buyers and sellers about the benefits of your wholesaling services and use our expertise to warm up leads, find the best prospects, and set your sales team up for success. With cold callers on your side, you can leave the hard work of lead generation to us and focus on other aspects of your business.
Call Motivated Sellers is an American-based real estate cold calling service that can help raise your sales and provide hot leads in any market. 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 deals.
If you’re ready to leverage the power of cold calling for wholesaling, Call Motivated Sellers is here to help. To learn more about the services we offer, just contact our team today!