Real estate agents are always on the lookout for potential properties they can sell through numerous means. While there are multiple means of selling a property, including fixing and flipping and foreclosure, we will be focusing on wholesaling in this article.
Wholesaling real estate is usually when a classified real estate wholesaler creates a contract for a wholesale property with hopes to get that contract assigned to another potential buyer. The wholesale agent isn’t concerned with renovating or fixing the property, instead they market it to potential buyers with a price higher than the contract they have signed.
Wholesaling real estate is considered as a short term investment strategy that doesn’t involve a lot of cash. Real estate agents that operate without extensive cash reserves can benefit from this strategy for selling under contract. However there are numerous downfalls to wholesale properties as well, including confusion in legality and complicated contracts.
The evident short term gain of wholesaling properties attracts real estate agents to this method of selling and buying houses. While there are a lot of opportunities at hand, it is often a bit hard to get access to the exact kind of property you are looking for. Wholesalers are usually looking for distressed
properties, because they offer a bigger and better return on investment. Distressed are best for wholesaling purposes, as they can be contracted under the market rates. Distressed properties often contain properties where the home needs significant repair, or the homeowners want to sell the property as soon as possible. Finding a distressed property can be a good way for wholesalers to earn more by selling the property for more than what is mentioned in the contract.
You can find real estate properties for wholesaling in the following places:
Real Estate Wholesale and Investment Groups
Real estate wholesale and investment groups are perfect for organizing a professional setup for real estate agents and investors to meet and greet. New real estate wholesalers are often at a loss of ideas when it comes to finding the right property to work with. Knowing this, it is best to attend investment group meetings, so that you’re in touch with the latest happenings across the business and can make connections easily.
Such investment groups offer a great opportunity for people just new to the world of real estate agents. They send weekly emails that contain a list of properties being sold and bought, along with the neighborhood, condition of the home and the prices being charged. All of this insight can help you in understanding the market well, and incorporating it within your own efforts.
Answering your question of how to locate such investment groups, you can do that through something as simple as running a local Facebook or Google search. Contact the Chamber of Commerce in your vicinity and ask them if they have any meetings planned for real estate investors and agents. With this information you can build your rapport and then be invited to all future meetings.
Real Estate Sites for Wholesalers
Real estate sites are perfect for individuals to find distress properties, but you need to be aware of the sites you are using. Looking at the wrong site for classified ads can waste your time and efforts.
You can find distressed properties on FSBO, HomesByOwner.com and craigslist. All of these sites have multiple options for you to go through and find what is best for you. It is, however, necessary that you use the right keywords for searching down your options. Through the right keywords you can locate distressed real estate easily.
Some of these popular keywords include:
- Motivated Seller
- Fixed Upper
- Must Sell
- Estate Safe
- Sold as is
- Fixed Upper
- Distressed Property
Hire a Property Finder
You can make your search easier by getting in touch with a property finder. An independent property finder can work in your team with the independent objective to locate properties and shortlist them for you.