Although property investment is an excellent way to build your equity, holding it can expose you to several risks. These risks may include vandalism, market swings and natural disasters like earthquakes
and hurricanes. Needless to say, the everyday challenges related to property holding can take your time by keeping you tied and busy. As an investor, you may find yourself engaged in issues like property management, and balancing debt and liability.

In order to buy a property for investment, you will require capital. You can purchase it for cash or take out a loan, whichever is feasible. However, taking out a loan may be lengthy where you may need to meet certain requirements, such as have a decent credit score and offer collateral.

However, another great way to enter the real estate market and build equity is to wholesale houses. You can wholesale houses with no cash, no credit and no handyman skills. It’s that simple. This means that you don’t have to invest your money for property buying or to take out loans for that matter.

In real estate wholesaling, properties are turned out quickly. Thus, there’s zero holding time and no loan terms and conditions to fulfill. As a wholesaler, you will contract with the seller to sell the property in a
specified time frame. Then, you will find cash buyers who are willing to buy that property for cash. This will make the transaction fast and smooth.

When Do You Need a Loan to Wholesale Houses?

However, sometimes you may need to take out a loan for wholesaling houses. Wondering why? In a competitive real estate wholesale market, you may need cash to advertise properties to attract motivated sellers and cash buyers. Advertising through bandit signs, billboards, TV, radio and newspaper comes with a cost.

Besides this, you may also have to invest in online marketing strategies. This can be slightly costly if your digital marketing campaign includes a mix of organic and non-organic strategies. SEO techniques like back-link building, blogging and keyword optimization are long-term strategies and require expertise. For this, you may have to hire an experienced SEO expert or firm to help you.

Furthermore, you also need a good amount of money to bid on, plan and execute PPC campaigns. This process also comes with a cost. If you don’t have adequate liquidity or a significant marketing budget, then you can wholesale houses using a loan. You can easily apply for a personal loan from a bank. Make sure to read all the loan terms and conditions carefully to avoid unpleasant surprises down the line.

Once you take out a loan, you can then use that money to market your services. You can advertise on different mediums to attract motivated sellers and find cash buyers. In this way, you’ll be on the road to building your own equity and making timely loan payments.

Back to Wholesaling Houses | NEXT: Is Wholesaling Houses Better Than Fix & Flip Houses?

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