Tips on Wholesaling Real Estate

Maybe you’ve seen them: TV shows where properties are bought, repaired and then sold for a profit (“flipped”). Seems like a simple enough concept, doesn’t it? All you need is some capital to get started and the rest is easy money, right? Well, not quite. Wholesaling real estate is indeed an effective way for someone with the ambition and know-how to earn money quickly. However, this can be a very intimidating process to begin because the knowledge it takes to do this is learned through years of experience. This article will reveal a few of the vital tips that help professionals turn a profit.

Have a Plan in Place

First and foremost, before you even look at distressed properties, you need people with specialized expertise who can help you maximize your profits while minimizing risks to your investment. Remember, you are the middleman here and as such won’t need to get your hands dirty, so to speak. A good title company and/or attorney are invaluable to have on your side. These specialists can help you to insure you are using the right contracts. The last thing you want to happen is to discover you don’t have a clear title on the property you have a contract on. Next, you will want to hire good contractors or sub-contractors. You will need workers with the experience in flipping distressed properties and giving accurate and fast estimates on the repairs of the property. These folks will be doing most of the labor that is involved.

Why Buy When You Can Assign A Contract?

Once you’ve assembled your team, now comes the time to hunt for distressed properties. Your goal here is to find prospective properties that will give you the greatest return on investment. So, like the stock market, you buy low and sell high. Only here, you are in control of the fluctuations in your investment’s value and not at the mercy of a volatile market (for the most part). What you’ll want to keep in mind is that you will not be buying properties. Instead, you will be putting houses under contract with all the necessary contingencies that benefit you as the investor and assigning that contract to another investor. This is where wholesaling real estate becomes fun!

Avoid Mistakes That Most Beginners Make

Most people want to learn real estate wholesaling when they first start out because it’s the fastest way to make a pay check in real estate. However, it’s not a get rich quick scheme. There is a lot of hard work involved in wholesaling. Most new investors tend to offer too much for the properties, only to later find out that they can’t sell the property. Don’t make this mistake!

Get Out There – Learn and Earn

There really isn’t much to it – all you need is ambition and knowledge, and the ability to turn both of those things into cold, hard cash. With your team of experts at your disposal, you will have the knowledge experience, and funding, so all you will need to bring to the table is your ambition and willingness to earn.