Want to build wealth sooner rather than later? You generally can’t go wrong with real estate investing, as long as you know what you’re doing. In fact, research shows that 90% of millionaires across the globe achieved their financial success as a result of real estate investing.
Of course, breaking into the real estate field can be a daunting task. Fortunately, that’s where wholesaling real estate investing comes in!
This refers to properties that are drastically discounted — or significantly under market value. If you choose to take part in wholesaling, you’ll essentially look for a discounted property that you can control via a purchase agreement. Then, while you’re under contract via this agreement, you’ll look for a buyer who wants to buy the contract.
As a wholesaler, when you decide to sell contracts, you’re not actually selling properties themselves. Rather, you’re selling to other buyers your right to purchase these properties. Basically, you’re looking for deals and then passing them along to end investors. The benefit of the wholesaling process is that it helps you to avoid risk and also avoid tying up your capital for as long as it would take to complete a rehab.
To get started, it’s critical that you first research the local market in which you plan to find deals. For example, you should take a close look at what housing prices are there to see how low they go (the lower, the better). Then, you should start working on your list of buyers.
The buyers list is one of the most important tools you’ll use when wholesaling, or serving as a middleman between sellers and buyers. A practical way of building your buyers list is to attend local real estate networking meetings or to even going on real estate investing podcasts. The more individuals who know you in the industry, the more likely you are to get leads regarding properties you can pursue as a wholesaler.
It’s also paramount that you line up the capital you need to bring your deal to fruition. This is possible by aligning your wholesaling service with a hard money or private seller right away. In this way, you can purchase the house if you end up needing to do so.
If you are eager to create more wealth for yourself and your loved ones, wholesaling real estate investing is a smart place to start. However, failure to make the most of each step of this process will prevent you from experiencing the level of profitability your competition is quickly realizing. Take your time and review as many resources as humanly possible to learn all you can about wholesaling.
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.