If you are a real estate investor or if you are just starting out in real estate investing, you may have heard of “wholesaling.” This is a common practice involving finding great deals on properties and selling them to investors who have cash up front. It is known for being low risk and profitable. However, what if I were to tell you that there is another practice that is even less risky and more profitable? That practice is called reverse wholesaling.
With reverse wholesaling, you do not run the risk of running out of time to find a buyer. In fact, with reverse wholesaling, the property is practically sold before you even finish securing it. The secret lies in putting together a buyer’s list. This buyer’s list should be made up of investors who have either purchased a property for cash or have recently purchased several properties. The second part of this process is researching the people on this list to figure out exactly what they are looking for in a property. In doing so, you are making sure that the property you get is a fit for the buyer, eliminating the risk of the investor not moving forward.
Not only does this process eliminate risk, it also greatly reduces the amount of money that is spent in advertising. Unlike wholesaling which requires you to advertise across the entire market, reverse wholesaling allows you to focus your money on just the properties that are a fit for your cash buyers. If done correctly, you can be sure that the people on your list are motivated to move should the time come.
Reverse Wholesaling, as simple as it seems, is not a common practice. This is mostly because investors do not know how to create a working buyer’s list. This list is not going to happen overnight. It takes time and effort to assemble enough true cash buyers to make this work. The buyer’s list can be seen as the barrier to successful entry into real estate investing. I am here to tell you that reverse wholesaling is worth your time, and will pay off within a few months. In fact, the time you spend building that list will quickly make up for the time you would have spent frantically searching for buyers before.
If you are already a real estate investor, it is easy to just adopt these new practices and work them into your business. Reverse Wholesaling is simply taking what you are already doing to the next level. The process is also great for beginners. If you are just starting out, don’t waste your time learning the hard way. Put in the time to get your buyer’s list together now. Reverse Wholesaling has been my key to success for the past eight years. I know you will find it just as profitable as I have.