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.
- Find a distressed property to wholesale. It will be under market value and has low capital requirements.
- Find real estate wholesale groups and real estate investment groups
- Find real estate sites for wholesalers
- Hire a property finder
- Make an offer and convince the owner to sell. This is how you secure the properties and make a profit:
- Approach the owner
- Make an offer and secure a low price
- Sign that contract
- Find a title company, contractor, and appraiser. All these professionals can be found through referrals, online searches, and recommendations.
- 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.
- Find a buyer. This won’t be a first-time home buyer or a family but an investor.
- Advertise the property on free websites
- Distribute flyers with property information
- Email investors.
- 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.
- Negotiate a deal with the buyer. The negotiation is critical as it will determine how much money you make.
- Make sure all costs are covered, ie. appraisal fee, contract walk through fee, title fees, marketing fees
- Closing on the Wholesale property. All parties will come together, and the deed will be transferred to the new owner.