An excellent way for entrepreneurs to join the powerful real estate speculation community is to sell houses in bulk. Basically, what a wholesaler does is find and sell a real estate at a low price and then sell it again to an investor. This investor is often another real estate speculator who will be responsible for carrying out all the necessary renovations. The good thing about selling wholesale is that you don’t have to spend anything upfront. The investor to whom you sell the property will pay for the house in your place. On the other hand, you will receive a sum of money, similar to an intermediary commission.
Become known in the market
Make sure that other people who work in real estate as well as those owners who wish to sell their property know you and know where to find you. You should always try to extend your network of contacts as much as possible to increase your chances of finding people involved in this business. Some of the spaces to create a network are, for example, the groups that belong to the Association of Real Estate Investors (REIA), foreclosure auctions, or conversing with friends and family. You should also promote yourself as much as you can. Consider creating a web page for your business.
Search for clues
If the properties do not come to you, you will have to make an effort to go out and look for them. Search for real estate online through wholesale lists and even on the Craigslist classified ads page. Another helpful resource you could use is MLS or “Multiple Listing Service.” The MLS portal is basically a place where real estate agents list all available properties for sale. This service is better than most real estate listing platforms because it is updated almost instantly. If none of this works, go outside and find properties for yourself. Who knows, maybe you could find one that is not yet listed.
Find the right house
Although it is not you who remodels the property, the real estate speculator to whom you sell it will. If you want to get the best price for your home, make sure the property does not show any damage considering the price. One of the most important environments when checking a house is the kitchen. Remodeling a kitchen can cost tens of thousands of dollars, so if the kitchen is in poor condition, you will not be able to sell the property for a lot of money. In addition, check for serious structural damage such as an infestation of termites or cracked foundations..
You should always make sure that both you and the person to whom you sell the property need to make a profit from the transaction. An investor will never buy a property for no profit. On the contrary, they expect to earn approximately tens of thousands of dollars with real estate speculation. If you subtract the costs of repairs and your wholesale commission from the value after repairs, make sure there is enough profit left to make the transaction worthwhile for the investor.
Find an investor
A smart way to access long-term wholesale sales is to organize a list of buyers. These buyers are habitual real estate speculators and real estate investors in your area who frequently look for properties to make money. You could also try to place advertisements in your area. This form of advertising is considerably economical. It helps you market yourself out and even find potential buyers. Once you have this list of buyers, turn it into a mailing list and send an email to these people every time you have a new property to sell.
Choose the best offer
Just because an offer has a high price does not mean that it is always the best option. Sometimes, a smaller cash offer may be better than a larger offer with financing. When people use credits, it often turns out to be a long and much more unpredictable process. Also, the property will remain under your ownership for much longer, which means that you will have to assume expenses such as property insurance, basic services, and maintenance. On the other hand, cash offers are transparent and simple. Make the calculations and settle at an offer that is appropriate for you.
• If you feel comfortable after having made a series of wholesale sales and accounts with available savings, consider taking the next step i.e., becoming a real estate speculator.
• When deciding whether to buy a property at a certain price, always make sure it is 70% or less of the value after repairs.
• Each city has its own rules regarding “commercials.” Make sure you know and comply with local regulations.
• Never buy a property that will not report profits to you or the investor.