Have you ever thought about making money through real estate? If you haven’t, you should. That’s one of the hottest trends in the global investment scene at the moment because of the great opportunities to become rich. One wonderful aspect of the real estate business is its endless diversity – it offers something for everyone: new and experienced investors, people with money and no money, those looking for a small quick profit and those going for large profit over the long run… There are many, many real estate strategies out there, and one of the most lucrative ones is real estate wholesaling. While it is not necessarily the first option that comes to mind when you think about real estate investing, it is definitely a great option if you have what it takes to be a real estate wholesaler. So, let’s see whether real estate wholesaling is the right strategy for you.
Real estate wholesaling is the right strategy for you if you are in it for the short run
While buying, owning, and managing rental properties is a great way to make money in real estate investing in the long term, some people are just not that patient. If you are one of those individuals who would rather make a profit – even if a small one – right now rather than wait for more money in the future, then real estate wholesaling might be just the thing for you. In this business, you have to find a property for sale, market it, and assign the contract to a buyer within a few weeks, which means that you will make money almost immediately.
Real estate wholesaling is the right strategy for you if you have a dynamic personality
As said above, wholesaling real estate properties is all about being quick and working under lots of time pressure in order to reap the benefits. That’s why this strategy is excellent for real estate experts with dynamic personalities. If you are not the kind of person who likes finishing a job completely within weeks, then forget about it.
Real estate wholesaling is the right strategy for you if you have excellent knowledge of the local housing market
Real estate wholesaling combines buying a property for the right price, marketing a property attractively, setting the right property price, selling a property at a good price, and so much more. This means that you have to have expertise in the local real estate market to be able to complete all these tasks successfully, within a limited time period. Thus, it is recommended to specialize in wholesaling real estate properties in a particular housing market and stick to it. Obtaining the right real estate knowledge and skills is the largest investment you will need to make in wholesaling, and you better make the most of it.
Real estate wholesaling is the right strategy for you if you are great at finding deals
There are these people who are just great at finding deals, regardless of what field you are talking about, including real estate. Of course, since real estate is a business, you can to a great extent learn how to look for deals, but still some people are just better at it than others. So, if you are one of those people who will be able to find properties for sale at a good price, you should by all means go for real estate wholesaling.
Real estate wholesaling is the right strategy for you if you are good at marketing
The second most important part of real estate wholesaling – in addition to finding a property for sale – is searching for and finding a property buyer. And what this takes is marketing the property well. Before you decide to become a real estate wholesaler, you have to acquire excellent marketing skills to make sure that you will be able to sell the contract to a buyer.
Real estate wholesaling is the right strategy for you if you can negotiate
When both buying the property and selling it, you will need to negotiate with the seller and the buyer, respectively. So, if you want to be a real estate wholesaler, you need to have excellent negotiation skills. Whether you were born to negotiate or you learnt how to do it, you cannot work in this business without this skill. Furthermore, there are other personal skills that you will need to be successful in this endeavor such as organizational, communication, and interpersonal skills. Even though you will not have tenants as a wholesaler, you will still have to deal with people – sellers and buyers as well as real estate agents – all the time.
Real estate wholesaling is the right strategy for you if you do not want to be a landlord
Many people decide not to deal with real estate investing because they believe that it means that you have to rent out an investment property and be a landlord. Being a real estate investor doesn’t necessarily mean being a landlord. Indeed, if you want to make money from real estate but don’t want to deal with property management and to tackle tenants, real estate wholesaling is one of the viable options for you. Unlike fix-and-flips, when wholesaling properties you don’t have to do any maintenance and repair work; you just have to transfer the ownership of the real estate property from the seller to the buyer. You don’t even get to own the property at all. With rental properties, you have to manage the property on regular basis in addition to looking for, interviewing, dealing with, and sometimes even evicting tenants. None of this is required with wholesaling. That’s why it can be an excellent strategy for making money in real estate.
Real estate wholesaling is the right strategy for you if you do not have much money
No doubt, the greatest thing about real estate wholesaling as opposed to other real estate investment strategies is that it requires virtually zero initial capital. You don’t have to buy a property in order to be a real estate wholesaler; you just have to facilitate the transfer of the ownership from the original seller to the new buyer. All the expenses that you will incur are those related to finding a property for sale, marketing it, and finding a buyer. That’s much less than a down payment on a rental property, closing fees, fixes, etc.
Maybe real estate wholesaling doesn’t sound like too much fun to you. But if you are entering the world of real estate, is it for having fun or for making money? Must be the latter, right? Well, wholesaling real estate properties can definitely bring you some serious profit, in the short run. So, give this strategy a thought before you say no.
Meanwhile, for more advice on any aspect of the real estate business, keep reading on Mashvisor.