Real Estate Wholesaling
Are you an aspiring Boston Real Estate Investor looking for ways to make easy money in real estate market even without any money to start? Then, consider wholesaling. In this post we are going to look at how real estate wholesaling works and its benefits.
Wholesaling – When you find a homeowner, willing to sell their property at a discount. You put the property under contract with the homeowner for a certain price. You market for a Cash Buyer and assign your contract with the seller to the Cash Buyer (end buyer) for a profit. This is as simple as it can get when you have 10 seconds to answer a question about the definition of real estate wholesaling.
Now, let’s really look at all the benefits of being involved in wholesaling : Benefits for Wholesaler, benefits for a Cash Buyer and benefits, yes, for a Real Estate Agent, – three side of a coin, three side of a successful business model through team work!
- The wholesaler is able to make quick cash without owning any property
- The cash buyer is able to get their preferred property and close the deal fast
- The real estate agent is able to sell distressed properties fast because home sellers and buyers are able to connect easily
5 Steps to Wholesaling Real Estate Investing
For real estate investors, the process of becoming a wholesaler is not complicated. The following are the few steps that you need to follow to get started with wholesaling.
- Research On Your Local Market Well
Before you get started with wholesaling, it’s advisable that you do your homework on the local real estate market. The more you get prepared and informed the better for you. Start by acquainting yourself with the basics of wholesaling houses.
Also, research your local market to understand the home property prices and trends, the different types of houses available, neighborhoods and amenities. This information is crucial and it will help you build a strong base for your wholesaling business.You may work for a Boston cash buyer and do calling, texting, mailing on their behalf to Gateway Cities such as Fall River, New Bedford and Worcester for cash flow or keep the search in Boston, MA for appreciation. The choice is yours, but you must decide where and stay focus on One Thing.
- 1. Create A Buyers List On Your Local Area
Before you even start searching for your first home to wholesale, it’s advisable to get a buyers list. You can build your buyers list by attending real estate events, use of email marketing and social media platforms where you get an opportunity to network with prospective home buyers.
Remember that your work as a wholesaler is to act as a middleman between a home seller and a home buyer. Therefore, if you already have a buyers list, your wholesaling business becomes much easier. You can do this by building strong networks in your area with interested home buyers and engaging them frequently to understand the types of homes that they might be interested in.
- 2. Secure Your Financing
A reliable financing source is also very important to secure before you engage on wholesaling. The finances will help you purchase the contract. Because it’s a short term deal, you can opt for short-term financing which works for you.
- 3. Look For Real Estate Wholesaling Deals
To get the latest wholesaling deals in your local area, you can start by looking for distressed property owners. You will often find property owners who are willing to sell their distressed property at a lower market value.
Online real estate websites and other public records platforms are a good starting point. You can also leverage on your existing network to find distressed properties for sale.
- 4. Choose Your Preferred Exit Strategy
In wholesaling, a real estate wholesaler has two exit strategies which they can use to make a profit from the deal. One is by selling the contract and the other one is by executing a double closing.
When selling a contract, the wholesaler signs a contract with the home seller for a certain price. He then finds a home buyer who agrees to buy the property at a higher price and profit is realized by the difference in pricing. Selling a contract is the most common wholesaling strategy that many real estate investors use because you don’t need to own any property for you to make a profit.
Double closing on the other hand involves actual owning of the property and the investor is responsible for all the associated costs that comes with home closing.
If you would like to learn more about real estate wholesaling, enroll on our online real estate wholesaling mastermind training class. Whether you are a new or experienced wholesaler, a cash buyer who is looking for a team or a real estate agent seeking appointment or listing, we are here to help you achieve your goals.
We already have some new wholesalers whom we are training and coaching. They call my list and some other investors list to book for an appointment. There are also experienced wholesalers who call, text or RVM and they go on to book appointments themselves.
There are many investors out there who are waiting for a wholesaler to call their listing. Book an appointment with us and we shall help you master the real estate wholesaling investment concept.
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Cheers to your success!