Wholesaling Real Estate Key To Success
Wholesaling real estate is popular to people who wants to enter in real estate business. This is due to the minimal risk involved. It may look like an easy way to earn money however not everyone is destined to be successful in this field. But for hardworking wholesale investor who got a vision and the right focus, you will ultimately reach your goals in no time.
Let’s discuss some key elements in wholesaling real estate that could help speed up your success in wholesaling real estate business:
In wholesaling real estate, investors would buy a property, get it under contract, sell the house or assign the property quickly. A real estate investor would sell the property to a buyer or another real estate investor who will either rent out the property or flip it. The key element to a successful wholesale real estate deal is to find the cheapest properties available.
A hardworking wholesale real estate investor doesn’t need to have large cash but one has to find motivated sellers thru direct mail, referrals, and etc. Once you get the sellers attention, you need to work on your negotiating skills on phone with the new leads. Out of 20 calls you might get 1 or 2 interested sellers, but you’ll probably just get one under contract. And this isn’t fun. Sometimes you will end up tired and frustrated. This is the time where you have to motivate yourself in order for you to find the sellers before someone else does. You can’t be sleeping because you can’t find deals in your dreams. Focus on your vision.
A solid business plan in order is a must for a successful real estate investor in wholesaling real estate. Understand the process from start to finish and learn to visualize the bigger picture. Investors should be able to identify objectives and have an exit strategy in place to attain your real estate wholesaling goal. Be prepared. Know who to reach out and consider every viable course of action. Whatever happens you are top of the game.
Build a network of investors and a long list of buyers. The longer list you got the easier it is for you to assign the contract. As mentioned earlier, wholesaling real estate requires you to be quick when it comes to decision making. If one investor can’t decide then at least you have a pool of buyers to choose from. There are several ways to build your buyers list: network meetings where you personally mingle with like-minded individuals, collecting business cards, Craigslist, real estate websites, etc.
Put yourself in the sellers’ shoes. Know how to empathize with them. Most sellers are going through a rough time, listen to their situations and help them get out of the mess they are in by not pressuring them to sign the contract. It’s always a good way to start your transaction by learning all the problems involved and what motivated the seller’s decision. Listen attentively; look for signs and how you might turn a problem into a solution to a situation. Be a real estate doctor. Taking advantage to any situation may get you a deal in contract but this won’t happen every day. In wholesaling real estate, investors are reaching out with each other and probably know each other. And a good reputation will likely get you another deal thru a referral, so proper ethics should be considered above all. Remember that we do business with people we like and trust all the time.