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The Basics of Wholesaling Real Estate

If you want to break into the real estate investment business without having to invest large sums of money, wholesaling real estate could be the perfect opportunity for you. It’s the safest, fastest and easiest ways to getting your feet wet in this profitable industry that has helped many people achieve wealth and freedom.

In simple terms, wholesaling real estate is when you purchase a property well below market value and then quickly re-sell it to an investor buyer at a reasonably marked-up price. Here is a quick rundown of how a successful  real estate wholesaler usually operates:

·        Find a motivated seller with a property that fits your investor buyers buying criteria

The magic word here is “motivated.” You will need a motivated seller in order to obtain the best deal. A motivated seller is someone who needs to sell a property, and is more concerned with a quick sell as opposed to receiving top dollar for their property. Often times a motivated seller could be someone who is going through a divorce, someone who needs to relocate, or home-owners who are facing foreclosure or behind on bills. You should also take a good look at the property and make sure that you’re able to purchase the property for 40-60 percent or less of its after repaired value (ARV).

·        Make an offer and put the property under contract

Although every market is different, there is a popular formula that successful real estate wholesalers use in order to determine the Maximum Allowable Offer (MAO) to make on a property. This maximum allowable offer is determined by discounting the after repaired value (ARV) of a house up to 65% and then subtracting the costs of any repairs that need to be made to the property. Many sellers will refuse your offer, but if you focus on dealing with motivated sellers that need to sell their house, you will begin to see your offers approved in due time.

·        Locate a cash buyer

The easiest way to find cash buyers for your wholesale deals is by simply driving the nearby neighborhoods and locating any home that is currently being renovated. Often, you will find that the owners of these homes are real estate investors that are looking to acquire more properties in the area. You can also market your wholesale deal by placing classified ads online or through a variety of other marketing strategies such as direct mail and bandit signs.

·        Closing the deal

Once you have a profitable deal under contract and you have found an interested cash buyer, you simply need to close the deal in order to receive your check. The beauty of wholesaling real estate is that you don’t need cash or credit, and you never have to worry about renovating a property or deal with tenants. You simply find a good deal and a serious cash buyer and you have the winning combination for quick cash.

Wholesaling real estate may seem intimidating at first, but it doesn’t take long before it becomes very enjoyable and even addictive. The amazing thing about wholesaling real estate is that you can do it anywhere—be it in your own hometown or in another city. Rest assured that you can wholesale anywhere in the country! What matters is that, whatever location you choose, you must focus on two things: finding motivated sellers who are willing to sell their property at a deep discount and serious investor buyers who will quickly purchase the property from you. Any place that has these two ingredients is the perfect place for wholesaling houses!

For more information on how to get your wholesaling real estate business started and to learn how to avoid the many pitfalls most beginning real estate investors make visit http://www.flop2flipwholesaling.com and http://www.DMVREIUnited.com for free videos and eCourse’s that will help you get started the right way.

How You Can Earn Loads of Cash Wholesaling Real Estate

Many people are initially drawn to wholesaling real estate because it is a quick and simple way to make big money once you’ve gained some experience. One of the most pressing questions out there is “How much money do I need to start?” The answer is—almost nothing! I say “almost” because sometimes you will need to make a small deposit in order to secure a property under contract. This deposit generally ranges from ten dollar to a one thousand dollars, but can sometimes be higher if attempting to wholesale banked owned properties it all depends on how good you are at negotiating the terms of the agreement . In addition to deposit money, the best real estate wholesalers are excellent and effective marketers and often dedicate a few hundred dollars to their monthly marketing budgets in order to generate more leads from potential motivated sellers and cash buyers. Other than these nominal fees, you don’t really need a lot of money in order to close a deal.

This deposit is often referred to as an Earnest Money Deposit, as this deposit makes your contract with the seller legally binding. Although making a deposit of less than a hundred dollars in order to secure a property that could make you thousands sounds too good to be true, this is exactly how wholesaling real estate works. Motivated sellers are willing to accept a relatively small deposit amount because they simply want to unload their property as soon as possible. Also, you, as the wholesaler, are not the end-user of the real estate. You are simply the middleman or middle-woman between the motivated sellers and motivated cash buyer.

Another great thing about wholesaling real estate is that you don’t need to have good credit in order to be successful. Even if you have bad credit, you will still be able to wholesale as many profitable real estate deals as you find. As a wholesaler, you are not looking to finance a property in order to purchase it. You are merely gaining control of a property by placing it under contract and selling your rights to the property to a cash buyer/investor buyer.

The amount of money you can make on a typical wholesale deal can be staggering. On average, experienced wholesalers can make an average profit of $1,200 to $10,000 per deal depending on their marketplace. It is not unusual for a full-time wholesaler to close two to four deals a month, making real estate wholesaling a viable profession for those who take the time to dedicate themselves to the craft.

In the beginning, you will have to put in an extraordinary amount of time and effort in order to find motivated sellers. Eventually, as you gain more experience and credibility in the marketplace, you will come across motivate sellers and serious cash buyers on a regular basis. By paying attention to the needs of both motivated sellers and the cash buyers in your marketplace, you will be well on your way to closing multiple wholesale deals and living the life of your dreams.

For more information on how to get your wholesaling real estate business started and to learn how to avoid the many pitfalls most beginning real estate investors make visit http://www.flop2flipwholesaling.com and http://www.DMVREIUnited.com for free videos and eCourse’s that will help you get started the right way.

Start A Great Career Wholesaling Real Estate

Wholesaling real estate is a lucrative business and can provide successful wholesalers with more time and money than most jobs. Although, there is an abundance of money to be made by wholesaling real estate, success does not usually come overnight. Most experienced wholesalers would agree that it can take up to six months to build a sizable monthly income, and sometimes it can take even longer.

Six months may seem like a long time in order to achieve sustainable success, but when making the comparison to other professions, this timeframe is outstanding when compared to the amount of money that can be generated wholesaling real estate. For example, doctors usually make six-figure incomes, as do many experienced real estate wholesalers; however, doctors must spend at least eight to ten years gaining the knowledge and experience needed to command this level of income. Real estate wholesalers on the other hand spend a much less than medical school.

In order to gain success fast, you need to be able to find profitable deals from motivated sellers. This one task will be the catalyst that sparks the growth of your wholesaling business. Upon finding motivated sellers and securing profitable deals under contract, you can confidently find and network with serious real estate investors, cash buyers in your local area. Motivated sellers are individuals that need to sell a property fast due to divorce, relocation, or other financial pressures.

Successful real estate wholesalers are able to achieve sustainable success by creating systems that attract motivated sellers and cash buyers to them on auto-pilot. Creating a system that makes it easy for motivated sellers and investor buyers to find you will provide you with a steady stream of profitable deals each and every month.

The great part about wholesaling real estate is that most deals do not take a long time to complete. It is not uncommon to make a large sum in less than 30 days after finding a profitable deal. This is especially true once you have implemented the aforementioned marketing systems that generate a consistent flow of motivated sellers and cash buyers.

Although real estate wholesaling, is not a get rich quick scheme. It is a legitimate business endeavor that will only be successful with hard work and dedication. Wholesaling real estate is one of the few businesses that can be started with little or no money and subpar credit, yet yield incredible returns in as little as a few months. Not only can this profession provide you with above average income, but it also serves as the foundation for any future real estate investing ventures that you may wish to pursue as finding good deals is always the key to a profitable real estate investment career, regardless of your business model. One of the best ways to start a profitable career wholesaling houses is seeking out a mentor/coach someone that will guide you around the land mines and pitfalls that will drastically speed up your learning curve.

For more information on how to get your wholesaling real estate business started and to learn how to avoid the many pitfalls most beginning real estate investors make visit http://www.flop2flipwholesaling.com and http://www.DMVREIUnited.com for free videos and eCourse’s that will help you get started the right way.

Why You Don’t Need a Real Estate License to Wholesale Real Estate

Many individuals interested in wholesaling real estate often wonder if they need a real estate license in order to get started. The answer is a big, resounding “NO.” Realtors and Real Estate agents operate differently from wholesalers. As a Realtor or Real Estate Agent, your services are contracted by a buyer or seller. Realtors have no “equitable interest” in the property. They are simply there to assist the buying or selling process. By providing these services, Realtors and Real Estate Agents are generally entitled to a commission ranging from 1 to 6 percent of the closing price of the transaction.

In comparison, a real estate wholesaler is not hired for their services. The wholesaler actually has a real “equitable interest” in the property, as they have placed the property under contract as a principal in the transaction. The wholesaler is not required to be a licensed real estate agent or realtor, as they are acting in their own interest as the contractual purchaser of the property. Since real estate wholesalers have an “equitable” interest in the property, they are able to negotiate deeply discounted deals with sellers and reap the profits of these transactions selling their interest to cash buyers. In contrast, Realtors and agents are only entitled to a commission that is often split among other co-brokers, realtors and real estate agents.

In addition to great profit potential, real estate wholesalers can make money with little to no risk involved. Realtors are regulated by their local real estate commissions and have a wide variety of rules and regulations that they must follow in order to conduct business. There are also numerous start-up costs and recurring fees that are associated with being a Realtor or Real Estate Agent, that are in addition to any marketing costs needed to generate new business. Wholesalers do not need to spend large sums of cash in order to generate new business, allowing successful wholesalers to realize extraordinary returns in as little as a few months.

There are limited upward mobility options for most Realtors and Real Estate Agents and it is not uncommon for successful Realtors and Agents to make the transition into becoming an active real estate investor. In contrast, a person that starts out as a real estate wholesaler can continue to grow his or her career by renovating and leasing properties, or by investing in other real estate asset types such as apartment complexes or office buildings. The upward mobility for a real estate wholesaler is truly limitless, and offers much more flexibility then the typical residential real estate agent position.

Unlike most Realtors and Agents must be sponsored by a real estate broker, real estate wholesalers can work alone or they can partner to build a successful real estate wholesaling business. All that is needed in order to create a successful wholesaling business are great interpersonal, organizational, and marketing skills. A successful real estate wholesaling business can be accomplished by any individual willing to put forth the time and effort to make their business work. If you are looking for someone to help you gain the proper skills to become a successful real estate wholesaler and teach you the ins and outs of the business you should apply for a mentorship/coaching program.

For more information on how to get your wholesaling real estate business started and to learn how to avoid the many pitfalls most beginning real estate investors make visit http://www.flop2flipwholesaling.com and http://www.DMVREIUnited.com for free videos and eCourse’s that will help you get started the right way.

When Just Getting Started

There are many ways to invest in real estate, the most common method being—buying a property, renovating it, and then re-selling it or renting it out. However, wholesaling real estate offers many advantages over the typical real estate investment model.

As a real estate wholesaler, you can sell your interest in a property without ever owning the property. This method offers less risk, but still provides successful wholesalers with high profit potential. In order to accomplish this level of success, real estate wholesalers specialize in finding below market deals for rehabbers and landlords.

The sellers of these properties are usually people who are under financial stress due to a bad tenants, divorce, or foreclosure. This stress causes an urgent need to sell the property quickly, making the seller more inclined to agree to your price and terms at a deeply discounted price. Upon finding and putting a contract on the property, real estate wholesalers sell their interest in the property to cash investors for a profit. Although every market is different, it is not uncommon for real estate wholesalers to profit $1200 to $10,000 for each successful transaction.

Here the top three reasons why wholesaling real estate just might be the best way to get your real estate investing career up and running:

·        No-Risk Investing

Wholesaling real estate entails very little to no risk depending on what type of wholesaling your practicing, making it a great place for new investors to start. The only common risk associated with wholesaling real estate is if your cash buyer suddenly backs out from purchasing the property, which is unlikely to happen if you qualify your buyers carefully in advance. If the deal goes bad, the only money at risk is your earnest money deposit, which is often less than $100. And if structured correctly you can put yourself in a position to never having to put up a deposit.

·        Low Start-up Costs

Since real estate wholesalers don’t actually purchase property outright, start-up costs are extremely low. Again, the only money needed is the earnest money deposit required to make your contractual agreement with the motivated seller legally binding in some states, and an optional marketing budget to generate motivated seller leads. The deposit will usually range from $1 to $1000. It may sound unbelievable, but it’s true—motivated sellers will not bother to demand a large deposit because their primary concern is to sell their property as quickly as possible.

·        No Need For Good Credit

A real estate wholesaling business is a great way to become financially free in a short period of time. The great thing about this profession is that no one is going to question you about your credit score, since you don’t need to apply for financing. Remember that with real estate wholesaling, you are not going to be the end-user of the property—therefore you have no need to finance anything. As a wholesaler, you are simply the middleman between the motivated seller and the Cash buyer. If you want to start a business with little risk and low start-up costs, real estate wholesaling may just be the opportunity that will allow you to live the life of your dreams.

For more information on how to get your wholesaling real estate business started and to learn how to avoid the many pitfalls most beginning real estate investors make visit http://www.flop2flipwholesaling.com and http://www.DMVREIUnited.com for free videos and eCourse’s that will help you get started the right way.

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