What is it going to take to be successful at wholesaling in today’s market?
There may be many factors which play into the success of real estate wholesalers over the next few months but the following four elements have been pegged by some real estate gurus and wholesaling CEOs as being the most critical for fully capitalizing on the current market and maximizing income…
In order to be able to take advantage of the best investment opportunities as they arise and fully maximize potential, deal volume investors need liquidity. Regardless of the ability to do no money down deals and even if investors are coming into the game of wholesaling houses with mega lottery winnings, there are still so many deals out there they won’t be able to touch a fraction of them. Besides, even those with sizable nest eggs may be better off keeping much of that money in reserve. So line up your financing sources early and be ready to roll as opportunities arise. Look to hard money lenders, commercial lenders and transactional funding.
It may be unfair, but as with most things in life, wholesaling properties fast and for maximum rewards is often about who you know, not what you know or what you’ve got. Fortunately, this doesn’t have to mean being born with political connections or having gone to an Ivy League school. It can be relatively easy to make connections in this industry, considering everyone else is on that mission too. The real difference is made by cultivating strong relationships and developing loyalty. While in general, wholesaling homes may be about the short game, winning in the long run requires investing in these relationships.
This has been said again and again. However, many of those attempting to wholesale houses still don’t get how fast they need to be and how valuable it is. When wholesaling properties, especially today, you don’t have days or weeks to evaluate and ink a deal. You have to be one of the very first to respond to new listings and triggers, and be literally ready to make an offer on the spot. This requires an intimate knowledge of local real estate values and properties, tools, or a system for evaluating deals fast, contracts handy, and some strong decision making.
The only thing guaranteed in the real estate industry is that everything is constantly in fluctuation. This not only means being agile in marketing and the types of deals you are willing to work with or where, but being flexible in the whole business model.