Nike said JUST DO IT.
How Can You Separate Yourself from The Crowd and MAKE IT HAPPEN?
Find The Deal
I hear this question all the time. Where do you find wholesale deals? Wholesale deals are usually bought at about 60% or less of the retail value of the property. However, newbies worry about where to find someone that will want to sell their properties that cheap.
Your goal is to find MOTIVATED Sellers. Motivated sellers are people that want to move on from their properties and get rid of their real estate headaches as soon as possible. The reasons that cause people to want out of their properties can include damage to the property, a divorce, unemployment, illness, frustrated with current tenants, or anything else that can create sleepless nights surrounding property ownership. You should also talk to real estate agents and tell them what kind of properties you are looking for and if they can help you.
Putting a property under contract
When you find a property that you can wholesale then the next step is to put it under contract. LOCK IT UP!. Congratulations if you get to this step… but realize that the battle is far from over.
Finding a Buyer
The next big step is to find a buyer. If you actually do have a wholesale deal then buyers will flock to it like it’s water in a desert. There are many ways to find buyers… they’re practically everywhere.
Here are a few suggestions to find a buyer below.
Investors in the Area
After locking up a property in a particular neighborhood. Cruise around the area looking for new construction; properties being rehabbed are a good sign that there is investment activity happening in the neighborhood where you recently locked up a wholesale deal. You need to get out of you car and introduce yourself to the construction crew and let them know you have a property available for sale not far from the one they are working on. In turn they will likely get you in touch with the owner of the property.
Advertise your property on craigslist. It is free, but you will need to keep updating your ad, as newer listings are at the top and older listings end up on the bottom. You have the option of leaving a phone number on your ads or simply have the prospective buyers send you an email if they are interested. This is a great way to build your buyers list from scratch.
Constantly network at Real Estate Investor meetings. Most of these meetings have a quick pitch session where you can get up and promote current wholesale deals that you have available. This will help you as far as branding yourself as a serious wholesaler in your market place.
Closing the deal
After you’ve found a profitable wholesale deal, you need to move forward with closing the deal. If at all possible, have your deals close simultaneously. This means that the title will transfer from the person you are buying the property from to the person you have sold the property to. The only reason that you would want to avoid a simultaneous sale, is if you don’t want the seller to see the profit you’re making. I wouldn’t worry about it because in the end you’re helping both parties out. If they do raise questions then just let them know it’s your job and it’s how you make a living. If they still raise questions let them know you where not in a position to take on this project at this time due to your inexperience and you decided to bring in a more experienced real estate investor to buy you out of the deal still giving you (the seller what you originally asked for or agreed upon). Wholesaling real estate is perfectly legal and I know many people who are fine with it because it’s great for creating win/win/win situation.