A Beginners Guide to Wholesaling Real Estate
Are you looking to buy wholesale real estate but don’t know where to start? The first thing you should consider is whether or not you want to flip houses. Flipping houses is a wholesale activity and requires the same wholesale prices that are found in retail properties. There are a few things to keep in mind when entering this business. If you are serious about making money flipping houses, there are a few things you should know about before you get started.
There is no real easy way to explain what a wholesaler is. A wholesaler is a company or individual who buys low and sells high. For example, let’s say you bought a piece of property with the intention of turning it into a rental property. The property has a great roof, was fixed up fairly well, and now you are thinking you would like to sell it for profit instead of renting it out. This is where the difference between a wholesaler and a property dealer comes into play.
Property dealers are much more interested in getting a property to rent out. They will spend a lot of time and money fixing up the property and making it ready to sell, rather than fixing up the roof and putting in the proper plumbing. A wholesaler on the other hand wants to get their first wholesale real estate deal out the door as fast as possible. The difference in the two techniques comes down to time and money. Property dealers can spend weeks or months on just one property, whereas a wholesaler will make multiple deals with different properties in different locations and may even have bought or closed deals with multiple owners at one point in their life. Because of the sheer number of deals these individuals will have had, they have lots of money and time to put into each of their first wholesale real estate deals.
So which one should you choose? Honestly, it really depends on what you are looking to accomplish with your investment. If you are looking to make money quickly and easily then go with wholesaling. But if you want to slowly build an investment portfolio then you will probably do better with a property investment company. There are also some investors who think that you can get a better return by going with the wholesaler route because of the lower overhead.
Either way you will learn how to wholesale real estate and to make quick and easy profits, but in order to do this you will need to learn how to close a wholesale contract. You can find a wholesale contract in three different forms: paper, electronic and verbally given. Whichever way you chose to go with, you will need to know exactly what a contract is and how to properly close a contract. While there are tons of great books and websites out there that will teach you how to do this, I would highly recommend investing in a course or two before you dive in.
There are no real secrets to making quick and easy money. The only secret is getting out there and finding your niche. As I mentioned before, I recommend taking advantage of a course or two before you start flipping houses. There is a lot of information out there, but it is all very basic and could take you months to master. By doing a wholesale real estate business and learning how to close a contract, you will be able to make money in no time flat.