What is wholesaling real estate?
Wholesaling real estate is when an individual finds real estate investment opportunities, puts them under contract and assigns the contracts to investors for a fee.
How to wholesale real estate properties successfully?
Successful real estate wholesalers build out a database of potential investors and sellers, attend real estate networking events, take the time to understand the market and take the time to understand what each investor in their network is looking for so that their marketing efforts are effective.
How to find off-properties to wholesale?
Wholesalers can start by looking for distressed and vacant properties in their local market and by building relationships with investors who may be looking to sell properties in their portfolio. Finding off-property deals is all about networking and understanding the market in which the properties are located.
- Find a property to wholesale
- Reach out to the owner
- Agree on the purchase price
- Sign a contract with the seller with an assignment option
- Market the opportunity to your network
- Agree on the wholesale fee with the buyer
- Transfer the contract to the buyer
Why should investors develop relationships with wholesalers?
Investors should take the time to develop relationships with wholesalers as they can present them to numerous investment opportunities across all markets. This is an effective way for investors to scale their business into different markets.
Why should lenders develop relationships with wholesalers?
Lenders should take the time to develop relationships with wholesalers as they have a wide variety of relationships with investors. Wholesalers differentiate themselves from other wholesalers by adding value to the acquisition process. The value added can be introducing the investor to a lender.