Wholesaling refers to a type of real estate transaction. Investors purchase properties at discounted prices and sell to another buyer for profit. Wholesaling is sometimes referred to as house flipping. When wholesalers flip houses they sell them in as-is condition and do not invest any money to rehab the property.
Wholesaling real estate can be a profitable business as long as investors have a solid team of realty professionals. Let's face it. The real estate market is a mess. Millions of Americans have lost their homes to foreclosure. Banks have engaged in short sales and have thousands of vacant properties in their portfolios. Neighborhoods are suffering the effects by paying higher homeowner association fees, property taxes and utilities.
Wholesaling offers real estate investors and buyers the opportunity to rectify some of these problems. Nearly anyone can become a real estate wholesaler; even those with little to no money. The first step involves becoming educated about real estate investing and various financing techniques.
The Internet offers a wealth of wholesaling real estate information. However, caution must be exercised. If someone claims you can earn $100,000 in 60 days with no money down and no real estate knowledge, click away as fast as you can. Instead, stick with reputable sources with solid track records such as Trump University, REIClub.com and CREOnline.com.
Many people neglect one of the best investment resources around - local libraries. Not only do libraries contain books, they also offer real estate publications, investing courses on VHS and DVD, and audio tapes.
The next step of successful wholesaling houses is to begin networking with real estate professionals. Attend local networking meetings or search for online groups. Real estate clubs are a great way to meet a variety of professionals to assist with wholesaling properties. Team members should include real estate agents, brokers, mortgage bankers, appraisers, surveyors, title companies, and other investors.
As with any business, real estate wholesalers need to develop business and marketing plans. In a sense, wholesalers are real estate matchmakers. Unless investors are purchasing properties outright, they need to locate sellers eager to sell properties at discounted rates.
Many reasons exist for people to accept a reduced price. Some have obtained short sale approval and are authorized by their lender to sell the house for less than is owed on the mortgage note. Others own a second home they can no longer afford to maintain. Estate administrators often need to sell real estate quickly to settle a decedent's estate.
Wholesaling is perhaps one of the safest investment strategies; as long as you invest time in becoming educated about the process. Learn more about how to wholesale by visiting our wholesaling real estate library. You will find information and resources to help determine if this real estate strategy is best suited for you.
If you are an established real estate investor looking for wholesale properties, subscribe to our Investor's RSS feed for instant notification of new investment opportunities.
Lastly, if you have discounted real estate for sale, submit information via the 'we buy houses' form and I will personally contact you to discuss available options.
Published on November 30, 2009 at 01:56 AM