An Introduction to Wholesaling Real Estate
While there are dozens of subtleties with wholesaling real estate that are necessary to learn if you hope to be successful in the business, the basics of wholesaling real estate is very simple.
Wholesaling involves several basic steps in wholesaling that quickly lead you through the transaction. One of the best aspects of the wholesaling industry is that once you have completed a comprehensive buyers list and have learned more about the wholesaling industry, these simple steps are going to be all that is left.
Step One: Acquiring the Property
Wholesaling never involves purchasing a property yourself. Rather, you sign a temporary contract where the property is in your control for a short time until it is dealt to one of your buyers. There is usually a pre-specified minimum price (though not always), and, as a wholesaler, it is your job to get the property sold to one of your investors.
Step Two: Contacting Buyers
Creating a detailed and comprehensive buyers list is one of your first jobs as a new wholesaler, something that you do even before you find your first property. Once you have your list and you have acquired a new property, your next step is to look for buyers on your list that would be interested in this particular property. Start contacting them, tell them about the property and let them know your asking price.
Step Three: Leverage
IF you have more than one interested buyer it is time to discuss terms. The buyer that is the most trustworthy, willing to make the largest deposit, and planning on paying the most for your property is the one you choose as the buyer. This is how you squeeze some extra money from your buyers and increase your profits, and it is yet another reason that having a large buyers list is so vital.
Step Four: Paperwork
The last step is to simply complete the paperwork, make sure you receive your deposit – usually through an escrow service – and make a small chunk of your future fortune. Then it is time to get started locating the next property.
Those four simple steps are roughly the entire wholesaling real estate process. While there may be a little bit of extra work here and there, the essentials of wholesaling boil down to those four steps. It is how well you complete all of the work in the background that turns a good wholesaler into a great wholesaler.
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