Wholesale and Flip Houses For Profit
Wholesaling, also known as “bird-dogging”, is a strategy you can employ immediately to kick-start your real estate investment career.
It’s a strategy that does not involve any repairs to the property, or dealing with conventional buyers and renters.
The process basically involves finding a good real estate investment deal, securing it and then selling it to a third party. You don’t need to hire a real estate agent since you are assigning your interest to the property to another investor or buyer. In this respect, what you are doing is selling your interest in the property. You make your profit through your referral fee alone.
Real estate investors make a lot of money, but they must negotiate a lot of deals and must therefore leverage their time. Also, uncovering opportunities for good investments can be difficult to find, so they spend many hours doing this.
As a wholesaler, you will search the market for potential rehab properties that real estate investors can buy and keep or immediately sell at retail prices.
Real estate investors want to make as many deals as possible, so they find this service invaluable and that means money in your pocket.
Typically, you only get paid if the lead you provide is successful and the investor buys the property. Searching for properties that investors might like takes time but if you’re smart, you can quite easily do it in your spare time.
As a wholesaler, you must become intimately familiar with the local real estate market.
Since you will locate and evaluate potential properties, you need to have solid knowledge about the properties that are available in your area. Rehab properties stand to make investors the most money, so make sure you do your homework on these.
Real estate wholesaling has a number of advantages: -
- Since you will not be assuming any kind of debt, you do not need to have a lot of money or good credit.
- You can wholesale properties on a part-time basis.
- You don’t need money for rehabbing properties; most of them will be sold as-is.
- Since you’re selling wholesale, you don’t need to be concerned about long escrows, so you can close the deal much faster.
- You will, however, have to become good at estimating repairs on a property, even though you are not going to do any of them.
Wholesaling is a win-win situation for both you and your buyer, and the process is simple, and is the quickest way to get started in real estate investing.
