The real estate business can be a tough industry to crack. The learning curves are steep and you’ve got to be keen on market trends to take advantage of every housing opportunity available. Furthermore, real estate typically takes a load of capital or financing for property investments. That said, there are ways around these challenges if you’re looking to make money in real estate. For instance, if you’re low on funds but want to flip houses for a profit, consider the world of real estate wholesaling.
What Does a Real Estate Wholesaler Do?
As a real estate wholesaler, your job is to find killer deals on properties and put them under contract. Then you sell the rights to that contract to a qualified buyer, ideally, a real estate investor. Essentially, real estate wholesaling is a strategy that involves selling contracts without having to buy, fix, or flip a house yourself.
This is done by landing great deals on properties (such as fixer-uppers) and selling that contract at a higher price to property investors who are always looking for high-equity properties. As a successful wholesaler, you stand to gain big earning potential. Read on for steps, benefits, and tips to get you started on a successful real estate wholesaling empire.
Top Reasons and Tips to Start Real Estate Wholesaling
If you’re still not sure about real estate wholesaling, or want a clearer understanding of how it works, these insights into this business opportunity should help clarify.
Quick to Make Cash
Being a real estate wholesaler is unique in that you can potentially get fat paychecks in a very short amount of time. Unlike real estate agents, wholesalers have total control over the return on their investments. In other words, you set the price for the property contract and effectively make a tidy sum at a higher price when you sell it to a property investor.
In one example, you can hike a property markup by 50%, successfully doubling your money. Furthermore, traditional property managers and house flippers might sit on a house for months or years before making a profit on a sale. As a wholesaler, you’re simply contracting a home to a seller, which can be done quickly as property investors are always seeking viable properties in which to invest.
Another advantage of being a wholesaler is that, unlike real estate agents, you don’t need an office or storefront. In fact, you can operate as a successful real estate wholesaler from the comfort of your own home. If making money in real estate from your home sounds appealing, check out this insightful article on Virtual Wholesaling: How To Flip Houses From Home for helpful tips.
Simple to Learn
While many investment strategies have a steep learning curve and require a lot of time to get up to speed with how they work, wholesaling is very easy to learn. Additionally, most real estate pursuits require knowledge of home improvements, house repairs, zoning laws, etc. As a wholesaler, all you need is a network of sellers and buyers which can be built over time through making contacts in person, email marketing, or social media.
The time it takes to learn and thrive as a wholesaler is also shortened by helpful real estate software tools. For example, this PropStream review clearly illustrates how this powerful software can help you find real estate data nationwide, and can even help build targeted real estate marketing lists.
Minimal Startup Investment and Low Risk
As a real estate wholesaler, you’re connecting sellers with buyers, which means your startup is minimal. Your biggest requirements to start making money are more about your abilities and determination rather than capital or startup cash. As there is no physical property to sell, you don’t have to spend your own money to make money. Additionally, you don’t need to have a real estate license before you start. All of this minimizes the fear of high investments that other entrepreneurial endeavors imply.
A Great Way to Get Your Foot in the Door
If you know nothing about real estate, then wholesaling is a fantastic opportunity to make inroads into the industry. All the work you do in the market as a wholesaler will be invaluable in your ongoing education into the real estate world. At the end of the day, being a real estate wholesaler requires a lot of research, marketing skills, and a self-starter attitude. If you’ve got gumption and are willing to make the right connections, being a real estate wholesaler could be your answer to a lucrative business.