Invest in Top Wholesale Homes
Real estate investing has always been an attractive alternative for people who want to make money, because of the good returns and the stability of the real estate markets. However, making great investments in real estate can be risky and challenging, especially if you are just starting in this world.
If you are a beginner, the wisest thing to do is to opt for lower-risk options and excellent opportunities, such as real estate wholesaling. If you manage to develop this modality, you will be able to make good capital without making major investments, while you open up your field in the world of real estate. You should know the process of investing in wholesale homes so that you know why it is one of the best alternatives for you.
Top-5 Steps for Successful Wholesale Real Estate Investing
- Select a Geographic Area
Delimiting your work area will give you a superior knowledge of it, and you will have a competitive advantage when it comes to finding real estate treasures. Also, it will be easier for you to gain prestige in the community, thus helping to boost your brand as a real estate wholesaler. Make sure it's perfectly manageable for you, but broad enough so that you can get a good flow of properties.
- Find Motivated Sellers
Now, you need to look for people interested in selling. Keep in mind that motivation is essential, because the more urgent the person is to sell, the better the price you will be able to achieve. Inheritance properties, auction properties, properties that are about to be liquidated are good opportunities. To reach those eager buyers, you must develop different marketing campaigns that allow you to connect with them. These tactics can include traditional and digital advertising, regular and electronic mailings, networking, referrals, and even door-to-door.
- Negotiate the Deal
When you find the potential seller, it's time to set the price for your purchase commitment. Keep in mind that you can't make a deal for the market price of the property. From that turnkey price, you must deduct various costs including repairs, paperwork, transaction costs, and even your and the investor's projected profit. If for example the house is worth $300K and the discount costs are $120K you should look to negotiate a deal for $180K. Then you can look for an investor to buy the property for cash for $190K and you will earn $10K on the deal.
- Get the Investor
Once you have an acceptable purchase commitment, you must find an investor willing to pay cash. The transaction must be cash, as your intention is neither to buy the property nor to have a long-term commitment. You must reach a sale agreement with a higher amount than what you committed to pay, thus achieving your profit. When you determine the price with the investor you will be able to receive your money and assign the purchase rights to the investor.
- Invest in Knowledge
If you are a beginner, or you are a realtor but you are new to the world of investing in wholesale real estate, the wisest thing to do is to get support from experienced realtors, like the Real Estate Disruptors team. With us, you will learn the pros and cons of wholesale real estate, and the best tips and strategies to succeed with wholesale homes. If you are an interested realtor who wants to make more money, or an aspiring realtor contact us to join our sales seminar and begin your path to success.