So the world of real estate interests you? You see all the big money and fast sales in real estate and you want a piece of the action, right? Real Estate is a huge world and there are countless ways to get involved.
But what if you don’t have a lot of money to get started? Even worse, what if you don’t have contacts? In order to become a player in real estate, you need buyers, sellers, and capital. However, there is a way to get involved in real estate without a lot of capital.
Real Estate Wholesaling is something that almost anyone can get involved with. But be warned, it is not for everyone.
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As a real estate wholesaler, you are the deal maker. What is a deal maker? You find great deals and sell the right for someone else to buy these deals. As investors become bigger players in their respective games, they find less and less time to “beat the street.”
As you know, the best deals in real estate are found off-market. This means that they are not deals listed on Zillow.com or Realtor.com, etc. Higher-level investors still want those deals, however, they do not have the time to “go door-to-door” to find them.
That is where you come in. You are the person who can find these deals. Once you find a motivated seller, you then find a motivated buyer. Your job is to connect them together while collecting a nice finder’s fee.
I want to point you in the direction of a book and an article so that you can get more information. The book is called “10 Other Great Real Estate Investments That You Can Do” by Micheal Lantrip. Also, there is an article on fortunebuilders.com. Read these for more in-depth step-by-step guides. I am sure there are even better resources once you start investigating.
I want to give you a brief overview, mainly because I never knew this world existed. This is a good way for a hustler to get their feet into the real estate game. Are you that hustler?
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I do not think someone would want to be a real estate wholesaler for a long period of time. However, it is an excellent way to meet real estate agents, brokers, house-flippers, banking agents, etc. There is a whole undercurrent of people in the real estate business. These are people most of us retail buyers never see.
If you are interested in the real estate business, this is a way to get into that world. It is also a way to work on your sales techniques. To sell is one of the most important functions of operating any business. Every business sells something.
Sales. Why would I be selling something? You have to convince homeowners of the idea of selling their homes. Remember, you are talking to off-market homeowners.
How would you find these off-market homeowners? A good question, with lots of different answers. You would use a combination of websites, mailers, signs (we buy homes), cold calling, and going door-to-door.
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It wouldn’t be completely random though. Using research through county records, you need to find homeowners without a mortgage. That is where you need to start. Then you can begin a mailer campaign, sending out fair (but low) offers to them.
There is obviously a small percentage of people who will respond, however, not everyone wants to keep their homes. There are many reasons why someone would want to get out of their current home.
Once you have a potential buyer, there is still much more work to be done. Including talking to the homeowner, getting a price where you can make a profit, and finding the right buyer. Remember, investors want to make HUGE returns. They are not looking for a 10-20% upside. They want huge profits.
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This means that someone has to feel the squeeze. That is a hard part because you may have to squeeze a homeowner to get the price lower. It could put you in an uncomfortable position. As I said, this is not for everyone. That is why your mailer should be very direct. The few leads that you get should already know the price you are going to offer them. No surprises are necessary.
There is a lot involved in real estate wholesaling. It takes a lot of hustle and organization skills. Most people do not make money in wholesaling. However, most people do not make any money outside of an earned income job. This is an independent job that requires self-motivation, consistency, accountability, and responsibility.
As someone who started a blog about 7 months ago, I know that anything you build will take a while to generate interest. Nothing gives you instant success. If you are truly interested in becoming a long term real estate player, I think this is a great way to get started.
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If you need to make money, there are probably better ways to do that. I think learning the underworld of selling and buying, especially in your hyper-localized area, could give you the foundation to a great career in real estate.
What do you think of real estate wholesaling? Too much work? Not enough structure? Do you have to deal with too many different people? I can understand all those arguments, but I would caveat and say these are the things that would make you a great real estate person. Whether you want to become an investor, agent, broker, wholesaler, hard-money lender, house-flipper, or landlord, you will need all of these skills.
You have to start somewhere to get involved in real estate, where will it be?
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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