Wholesaling 101 – Step by Step on How to Get Started
What is wholesaling? Wholesaling is one of those real estate strategies that are very appealing to beginner real estate investors, because it does not require a lot of money or experience to get started, and you can get into the real estate investing game pretty quickly and more importantly, make money in a short time.
Background of Wholesaling as a Strategy
Believe it or not, wholesaling is a newer term. In the ‘90s when I started wholesaling, it was called “flipping the contract.”
Over the years, wholesaling has become a mainstream strategy, appealing especially to beginners real estate investors, because it can produce results (money) quickly.
Wholesaling is a pretty straightforward process. Timing sequence is crucial though.
Make sure you download the 7 Simple Steps Ebook that will go into detail about every single step and how.
Step 1 – Choosing the Right Area
This is crucial if you want success in wholesaling, especially in today’s competitive and saturated market.
Step 2 – Building a Buyers’ List
An old marketing saying states that “The Money is in the List.” Once you have pinpointed the right areas to invest, your next step is building your buyers or prospects list.
Step 3 – Locating Properties
You are looking for “distressed sellers,” not necessarily “distressed properties.” Your best bet in locating distressed/highly discounted properties is to locate the “Don’t
Wanters.” In the 7 Simple Steps Ebook we go into the 10 best ways to locate these owners.
Step 4 – Analyzing Deals
The “old” Rule of 70 (where you should not pay more than 70% of the Actual Retail Value (ARV) does not work in this market.
Pay a fair discounted price and try to leave at least $10,000 possible spread for your profit as a wholesaler.
Step 5 – Submitting Contracts
When dealing with distressed properties and owners, you want to keep the purchase contract as simple as possible.
A simple straightforward 2 page sale contract with 1 or 2 contingencies is all you should use with the seller.
Step 6 – Due Diligence
When it comes to wholesaling, you don’t have to worry as much about the due diligence. It’s up to the end buyer to perform his or her own due diligence. You are just negotiating a transaction and “flipping the contract.”
Step 7 – Closing and Setting Up a System
Wholesaling is a numbers’ game. You have to go through a lot of leads to get to the “golden nuggets.”
Start setting up a system from the beginning that can go through a lot of leads thoroughly, without leaving any “stones unturned.”
Keep it simple. That’s why I call it Wholesaling 101.
Wholesaling can be a fun strategy, which can put a lot of cash in your pocket fast, compared to other real estate investing strategies.
If you are interested in learning more about the 7 Simple Steps System to Wholesaling at least 5+ Deals a Month, please download the free ebook.
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