There are several better ways to make money from real estate than building a wholesale real estate business. The wholesale party does not require money down, no credit, and no license. The success of real estate wholesale is predicted to be almost entirely at hard work, good assessment, and a reliable buyer network. But where should it start?
You need a buyer
Unlike traditional real estate investments, where an individual or business takes physical ownership of property, increases it, then sells it for profits (more common practices referred to as “flipping”), wholesalers only enter contracts to buy property for a number of reasons (seizure , in needs or repairs, motivated sellers) are sold below what value is.
Wholesalers then find buyers who are willing to take control (and pay privileges). Real estate wholesalers are paid a small part of the spread between the requested price and the true value of the property. Thus, wholesale makes cash while buyers can still secure very good transactions. The key to real estate wholesale success can quickly find and secure the buyer.
How do you get the buyer?
There are several ways to build a list of your buyers. The network with local and national real estate investment organizations is a very good place to start. By joining these organizations, you not only have access to potential buyers, but can also take advantage of their expertise that has been in the business longer than you. There is no point in trying to rediscover the wheel. Wholesalers also have to network with local contractors, real estate developers, and property management companies, which are likely to be interested in taking advantage of good things.
Other valuable resources are classified ads, both print and online. Real estate investors attach their local newspapers for certain keywords in advertising, such as “motivated sellers,” “good,” and “fixer.”
If you want to avoid even small costs associated with placing newspaper classified ads, real estate investors usually switch to free electronic classification services, such as Craigslist.com and backpage.com. This service will also open your property to a national potential buyer network. Effective text for advertising can read, “Selling houses with big discounts – investors are needed for extraordinary opportunities.” It will be crazy to ignore a strong advertising tool.
If you have a real estate website, you can collect potential buyers through an opt-in bulletin. A bulletin can help you build relationships with and finally sell to a group of targeted real estate buyers. You can also try marketing campaigns and PPC emails.
This is not a complete list of the ways a person can build a list of client buyers – the only limitation is an entrepreneurial imagination. And when building a list of your buyers, make sure to secure the name, email address, fax number, and address of potential investors. Build a list of email contacts that you can use to spread the news quickly after you sell the property.
