Newbie’s Guide to Real Estate Wholesaling in 7 Simple Steps

Real estate wholesaling is one of the popular investment opportunities because of its simplicity to get started. Most beginner real estate investors start with wholesaling. To be a wholesaler, you don’t need a license and it can also earn you a quick profit with a minimum cash investment. One of the common questions newbie real estate wholesalers ask is how to get started. As a wholesaler, you will need a buyers’ list to use to contact a potential buyer once you find a wholesale property. What does it take to become a successful wholesaler? If this is what you’re contemplating about, you are in the right place. With too much information circulating the web, some newbies get confused because the majority of these information does not include the basics. Here, you will find a guide for those have not done a deal and are trying to work it out.

To have a successful real estate wholesaling transaction, follow the steps below.

Find a Real Estate Wholesaling Deal

You should start by getting a deal for a distressed property. Marketing is vital if you’re looking for deals to close. There are many ways to find a deal such as driving for dollars, digital marketing, direct mail, family, friends and many more. Don’t sit and for deals to locate you. Take action and find deals yourself.

Determine If the Property Is Worth

Once you find a distressed property, you need to determine if it is a worthy investment. Look for comparable sales in the area. The selling price of similar properties that have been rehabbed will help you determine the how worth is the investment property. You don’t want to have a property that no buyer will be interested to buy under contract.

Present an Offer

After comparing the sales in the area and determining the after repair value, the next thing is to make an offer. Make an offer to the seller by presenting a relatively low value.

Submit the Contract

If you come to terms with the seller, you will need to submit a contract. Submit a contract to your closing agent.

Find an Investor for your Real Estate Wholesaling Property

Finding a buyer for the wholesale property should not be a challenge if you have a good deal. Choose the effective way to market your property and get a buyer.

Create an Agreement with the Buyer

Once you agree with the buyer on the terms, you can now create an agreement. Assignment agreement and double closing are the common types of agreements used.

Coordinate All the Real Estate Wholesaling Closing Processes

In this step, you have to coordinate everything. While it may seem exciting, it can also cause frustrations. Contact the closing agent to ascertain that they have all the necessary paperwork and that the seller knows the closing schedule. Moreover, you should confirm that the buyer has handed over the earnest money and has the closing schedule as well. As the wholesaler, you have the task to coordinate the transaction until it is closed.