Avoid These Real Estate Wholesaling Tips at Your Own Peril If you do NOT have sufficient funds to get started into real estate market, or you are simply interested to make passive income without actually purchasing and managing a property yourself, consider wholesaling your property. In real estate wholesaling, you don’t actually own a property. You sell it “as is” to another investor. You do this by making an offer to a potential investor, hope they accept it and purchase it from you. The investor will likely be a house ‘flipper’ or a dealer themselves and they’ll arrange all the funding necessary to purchase the property and look after it as well. Wholesaling a real estate property is quite easy and it offers a quick ROI for first-time investors. Here are few reasons why most savvy investors prefer real estate wholesaling. 5 awesome benefits of real estate wholesaling: 1. The startup cost is very minimal, less than $100. 2. You do not use your own credit. 3. You sell the property before you own it. 4. You do not have to repair or maintain the property. 5. Less time required to get started. In real estate wholesaling, you make offers on properties with ‘low market value’ to other potential investors. You may ask – “Would anyone be interested in buying properties having low market value?” But the funny thing is that there are plenty of investors looking for wholesale deals near your area. In fact, these ‘savvy’ investors purchase wholesale properties at cheap price, repair and remodel to raise its value, and ‘flip’ or sell it to make good passive income for themselves. Before purchasing, however, they usually look at the ‘after repair market’ value of the property to figure out if it would be a worthy investment. As a wholesale dealer, your job is to find worthy properties at good price, make offers to potential investors, and get it accepted. How much will you make through real estate wholesaling deals? It depends. The RETURNS depends upon the market value of the property (after repairs) and the total repairs and maintenance costs. For example, a home, worth $100,000 after repairs, is for sale at $60,000 that needs $10,000 for repairs. As a wholesaler, you find this property and get a written permission from the current owner stating that you are allowed to make a contract offer to another investor.
Once you find an investor, you assign the property to him/her. He/she’ll pay you the ‘contract fee’ (between $1000 to $10,000), purchase the property from you, repair and remodel it, and then, finally, rent it or ‘flip’ it to make a good amount of ROI. The best part of wholesale business is that you can quickly close the deals, and within small period of time build significant amount of wealth. How to find investors to invest in wholesale deals? There are several ways you can make offers on wholesale properties. You may place a classified ad on your local newspaper. They’ll likely thank you for saving their precious time by finding ‘hot deals’ for them. Another way is to join real estate investment clubs (REITs). Many seasoned as well as first-time investors, dealers, and wholesalers join REITs to help each other find ‘hot’ properties near their area. Making offers on wholesale properties via REITs would be very easy and time saving too.
Amir Baluch is a professional writer & author, lives in USA and wants to share latest information about realestate investing Dallas and also giving more real estate investment company Dallas . For more details you can visit us at website or call on 214-810-4DFW.