In general, the term wholesaling properties means selling a home below market price, to a buyer. But this buyer has financing available in cash or uses hard money/medium money to close it fast.
Wholesaling properties can be very lucrative. However, there are some things you must know about wholesaling before you put your first deal in.
How Wholesalers Make Profit?
The key is finding distressed homes or sellers motivated to sell fast as is, so properties are offered at under market values. The intention is to offer the same property in the same conditions to expert candidates (often investors or contractors) for a higher value, considering the potential property that will turn out after performing the repairs or renovations needed. That price difference (minus all expenses incurred to carry out the transaction) is wholesalers’ profit.
Does Wholesaling Properties Work?
Yes! It absolutely works! It is an excellent alternative for those who can invest more hard work and time than money to begin. The best part? Wholesaling is pretty much risk-free. Why? Because of the tiny financial efforts, it may require and the safety a good contract can offer you.
You Should Work Hard on Your Buyers’ List
Creating connections and having a list is not enough. Your job is to keep yourself in the top of their list, having you as their favorite option when thinking about buying a property. Completing a few deals and a little good advertising is great to have a contact. But knowing their preferences and giving them what they want will send you to the top. Respect each buyer’s field of expertise, budget, choices, and requests and focus on filtering the properties accordingly.
Want to learn more about the art of Wholesaling?