Buying and selling real estate as an investor is easy, right? The truth is that investing in real estate in incredibly competitive and most new investors struggle to break into the business and get to the point completing their first profitable deal. While wholesaling is get first step into real estate investing there is still a level of knowledge and skill required to closing your first deal.
Today we will cover 4 areas to focus on while getting your real estate wholesaling business set up.
Develop a Network of Buyers and Sellers
This might sound like common sense, but too many new wholesalers fear that they are competing with other investors. The reality is other investors are your best allies in the wholesale process. Not only will a network of other wholesalers, frequent sellers and rehab investors become a resource for you to find and unload opportunities, they will also be an asset in learning more about wholesaling and investing in general.
Every market has local real estate meet up groups so do some research to find out when and where the meet ups are in your area. Do your best to attend the meet ups regularly and build relationships with other people working in the industry.
Present Buyers With A Plan
Make it easy for a potential buyer to see the value in the wholesale deal. Prepare a detailed market analysis of the property, the market, and the potential rehab cost. Make it easy for the buyer to see the return on investment and make a quick decision. Sure, the buyer will want to do his own due diligence but you’ll get more interest in any property by simply having all the details in order.
Make sure the information you put together for the buyer is accurate and complete. Most cash buyers are experienced investors so if they find inaccurate information in your deal presentation, they will quickly pass on it. They may also ignore future deal opportunities you present if they believe your credibility is in question. Be sure to include as many pictures in your deal presentation as possible and point out any specific big-ticket repairs required.
Having partners is a step beyond just wholesaling and networking. Partners become an integral part of the deal process. While you might not want to share profits, it makes sense to do this if you can scale up the operation. If you are good at finding distressed properties and have a partner who can present the package to sellers, you both can focus on the areas where you are best suited. This increases your chances of finding and obtaining more properties to wholesale.
As your business grows and you expand into other areas of real estate investing, the partnership also grows to ease the overwhelming burden of any one transaction. It’s a simple divide and conquer approach with each person great at what they do and focusing on strengths while learning more about their weaknesses.
Invest Back Into Your Business
Making money is priority one. Even though you aren’t investing the big bucks into a real estate rehab, make sure you don’t think that wholesaling has no costs involved. Sure you can keep costs to a minimum, but investing in your company allows you to scale up and build the business in your area.
How do you invest in your wholesaling business? Pay for real estate classes and join investment clubs. Spend money on advertising and presentations. Hire an assistant to help you maintain a professional image and spend time in the community networking. Wholesalers need to be out and about to know what is going on and find the great deals.