Wholesaling is buying and selling properties for a small markup quickly. The key to success is good marketing, good deals and having a large network of buyers and sellers.
1. Find a distressed property to wholesale. It will be under market value and has low capital requirements.
a. Find real estate wholesale groups and real estate investment groups
b. Find real estate sites for wholesalers
c. Hire a property finder
2. Make an offer and convince the owner to sell. This is how you secure the properties and make a profit:
a. Approach the owner
b. Make an offer and secure a low price
c. Sign that contract
3. Find a title company, contractor, and appraiser. All these professionals can be found through referrals, online searches, and recommendations.
4. Assess the property’s renovation needs. An estimate of repairs is a valuable negotiating tool and will help increase profit. This is important to investors because they will see the value and potential profit your property will bring them.
5. Find a buyer. This won’t be a first-time home buyer or a family but an investor.
a. Advertise the property on free websites
b. Distribute flyers with property information
c. Email investors
d. Once buyers start calling about the property, save the name and information to a spreadsheet. This is an easy way to send information about a new property to a whole buyer list. This will decrease advertising costs and increase potential profit
6. Negotiate a deal with the buyer. The negotiation is critical as it will determine how much money you make.
7. Closing on the Wholesale property. All parties will come together, and the deed will be transferred to the new owner.
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