As the wholesaling market becomes more saturated, competition and networking are heating up and making the hunt for buyers and sellers more challenging. With so many entrepreneurs trying to break into real estate, some people are wondering: is wholesaling homes still profitable in 2022?
In short, yes. Times may be changing, but wholesaling homes remains a lucrative and increasingly popular method of investing in real estate. Investors are drawn to wholesaling because of its low barriers to entry, its wide application, and its nearly uncapped profit potential.
Still, there are always drawbacks to any business endeavor, and success in the wholesaling industry is highly dependent on the investor’s ability to invest in worthwhile properties while keeping expenses low. Much of a wholesaler’s success is directly related to their marketing ability and the relationships they have built in the industry. Remember, for wholesalers to hit their sales goals, they’ll need to find relevant buyers for each contract before it expires.
So how can you conquer the current market and get the most out of wholesaling homes this year?
Wholesaling Homes in 2022
Find the Right Area
Real estate investors often struggle with the issue of market saturation, but this is especially true in the wholesaling business. The key to combating a saturated market is finding a profitable location.
Currently, wholesalers are experiencing greater success in small to medium-size cities with a population between 200,000 and 1 million. In this type of area, you can expect to find more lucrative opportunities with a lower amount of competition than in large cities. So to make the most of wholesaling in 2022, target and dominate these middle-sized markets.
Prioritize Lead Generation
Once you’ve settled into your ideal market, now it’s time to locate promising properties. However, uncovering qualified leads can be challenging, especially with the growing competition we’ve seen in recent years. While each lead that you generate increases the likelihood of gaining a contract, in the wholesaling industry, the rule of thumb is one contract per 300 leads. This can be a huge burden on your budding business if you don’t have a solid lead generation strategy in place.
Right now, one of the best ways to contact qualified leads without sacrificing your time is by forming a lead-generating partnership with professional cold callers. They will work with your team to create a script that puts your offer in the best light and makes it easy to connect with potential sellers. When a lead seems promising, cold callers will send those qualified leads to your sales team to follow up and close the deal.
Multichannel Marketing
Some sellers may already be looking for ways to sell their homes, so it’s also important to create awareness of your business locally. Furthermore, to profit from wholesaling, you must also find buyers for the properties in your portfolio. To attract both audiences, a solid marketing presence will expand your pool of buyers and sellers.
In 2022, it’s best to employ a mix of digital and traditional marketing to expand your visibility. Since your ultimate goal should be to contact as many leads as possible, you want to use multiple channels to build your brand — such as social media, email, or direct mail.
What Are the Most Profitable Wholesaling Opportunities?
While wholesaling real estate is one of the most popular forms of investment, wholesalers can attribute a large portion of their success to the properties that they choose. Of course, wholesalers will need to find properties in the right location that fulfill their requirements. However, there is more to this process than simply choosing the right neighborhood. Wholesalers should consider investing in the following properties to obtain success:
- Single-family homes are the most common form of wholesaling investment property because there are so many of them, and they’re relatively easy to flip. As a result, single-family homes are a great niche to acquire high volumes of cash.
- Commercial real estate includes retail malls, office buildings, and more. To get started in this niche, you’ll need to find commercial spaces that people aren’t interested in anymore. Contract these buildings at low prices to earn the highest profit possible.
- Apartment buildings can also undergo the wholesaling process. Although many wholesalers are intimidated by the additional units, the profit is often the same as a small family home.
- Lots and land are also suitable for wholesale, including parking lots, infill lots, large acreage, and properties ready to be torn down. In addition, lots and land have fewer rules and quite low holding costs, making this an interesting option for creative wholesalers.
Find Sellers and Buyers with Call Motivated Sellers
Wholesaling homes is an attractive revenue stream because it’s easy to get started. However, it’s not so easy to maintain a sustainable stream of potential properties and interested buyers. Ultimately, finding buyers and sellers is probably the most difficult part of starting a wholesaling business — so why not leave this to the experts?
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. Informing interested buyers and sellers about the benefits of your wholesaling services, we’ll 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 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 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!
Marketing by Joseph Studios