The wholesale technique tends to excite new real estate investors because it is a niche strategy that can generate quick returns for people just starting out in real estate investing.
What I like most about this technique is that it offers a level playing field for everyone, with or without experience. A newcomer or even a seasoned investor can start using this strategy to get paid quickly without the need for credit, cash, lenders, contractors, a 401-k, an LLC, or much more.
Wholesaling real estate or selling houses for cash is when you act as a middleman between a motivated seller, who is looking to get rid of his property before impending foreclosure or perhaps a divorce, and a motivated buyer who looking to take over the payments on a property that they expect to rapidly increase in value or one on which they expect to make repairs that will force the value. You make money by charging a fair amount, an “Assignment Fee” on each sale. Moves property quickly, often transferring ownership from a motivated seller to a motivated buyer at closing. Of course, there are a few things to consider before embarking on what could be a very lucrative career.
Visualize your successful wholesale business and personal life first
Get comfortable with your hopes and dreams because they are yours and they don’t matter to anyone else like they matter to you. The mind is a powerful thing and when that mind meets the law of attraction…much can be granted and accomplished.
I remember how it happened to me. I went to my first real estate training seminar and walked out of there a rookie on steroids with absolutely nowhere to go…but my mind was buzzing with everything I had learned during that 3 day boot camp. My head felt like it was literally stretching and expanding… I was growing. In hindsight, I now know that it was because of this growth that I was unable to get all this new knowledge to calm me down or even allow myself to sleep without dreaming of “doing the numbers” and I was also seeing all kinds of houses in my dream. Most importantly, I found myself happy and prosperous in my newly chosen field. My passion for real estate investing drove my conscious and unconscious thoughts and I was determined to see it through. So, I’m a true believer that before you do anything, you have to “see” it first. See it in your mind’s eye, see it in your dreams, and then keep it in your heart. We all have hopes and dreams that extend beyond the money-making aspect of having a profitable wholesale business… right?
Remember to see yourself doing those things too… whatever they are. But don’t stop there. You have been educated, you are empowered and at this point… you must execute.
Make a plan – this is your business, not your part-time hobby
Benjamin Franklin said, “To fail to plan is to plan to fail” and this is especially true in the wholesale real estate business as well. And I say business because that is what it is, a money making venture where you expect to be financially rewarded for the time and effort you put into it. It may start out as something you do part-time, but that doesn’t mean it always will be. So you need to start by setting goals and setting goals to reach those goals. Things can change as your experience grows and you learn new methods to quickly locate, buy and sell property for a profit, but having a good plan from the start will keep you focused in the short term.
Let Wholesale Become Your Life – Make It Happen
If you really want to make money in real estate, and in particular wholesale property, you have to make it happen… make it a part of your life. The best athletes train hard, the best musicians practice tirelessly, and the most successful real estate investors are always working and studying to improve. This means reading books, newsletters, and websites; listen to tapes and CDs; and watch DVDs that can help you transition from your 9 to 5 job with confidence. Become obsessed, especially at first, with learning everything you can about how to wholesale real estate and master the business.
Find your market
Do some research and select 2-3 good neighborhoods or a part of town that you know offers the best potential for a good profit and work, work, work. These would be the areas with a minimum number of days on the market because they are in sought after locations.
Target your market
Choose your promotional materials, your advertising medium to address your growing area. Will you be using signs, direct mail, vehicle magnets, website submission forms, flyers, or maybe a huge billboard or local grocery cart with your name and benefits outlined on the seat flap? Many investors, especially in today’s market, will have to try different materials because what may have worked in the past may not be a good use of ad dollars in today’s market, it’s a different time. You will have to explore what your sellers are responding to and then saturate them with that.
Market, market, market… oh, and did I say market?
Find motivated sellers
The one thing that can set you apart from all the other people looking to make some extra money by wholesale/trading properties is the ability to spot undervalued properties and negotiate a great price with the owner. This requires a bit of legwork and often the development of research skills if you really want to look for deals that other people in the business miss or don’t really want to expend the effort. However, there are motivated sellers, and once you know how to find them, you’ll be well on your way to seeing your wholesale profits explode.
Find motivated buyers
Another critical component to completing any real estate wholesale/renovation deal is creating a list or file of people who want to buy undervalued real estate for repair and remodeling or add to their rental portfolio to create an income stream. They are usually builders, contractors or people who are already renting properties in the chosen area. Know their clothing purchases, the type of property they like to “flip” or rent. The stronger your listing, the easier your job will be and the faster you’ll get paid through the wholesale of your real estate deals. In my course, I teach my students 3 valuable ways to make sure they aren’t adding tire kickers to their list.
flipping the deal
Now is the time to sell your sweet 5-6 figure wholesale deals for cash! It is easier than you think. We have developed an amazing 90-day eCourse to get paid that explains how to build a large database of high-performing buyers and also how to sell properties on the retail market to end-buyers.
Wholesale is a great way for people without much cash flow to start taking advantage of the huge profits to be made in real estate. If you think wholesale real estate is for you, take the time to develop your plan and learn as much as you can about the business before you get started. For more information on how to find the BEST deals, check out 90 Days to Collect Wholesale Homes.
If you like what you’re hearing about real estate wholesale/selling because you now realize deep down that it can help you create a bigger and bolder life than the one you now own…then don’t You can’t waste another day. Once you really, really take it in spirit (because it is) that this business exists, in today’s market conditions where you can certainly find a property today and wholesale it tomorrow for thousands of dollars… no you have no choice but to do whatever it takes to make that happen…not later but now.
Wholesale pays you now and I guarantee you’ll love it!
Karen