Benefits of Becoming a Wholesale Real Estate Investor
There are many different ways that people can invest their hard earned money. But most will say they feel far more secure in real estate investing or investing in property. At least they know they can hang onto it for the long term and have good expectations for a ROI.
Then there are others who like to see their investments grow much faster than that. For these individuals they may want to consider becoming a wholesale property investor.
What is Wholesale Real Estate Investing?
It is all about getting a contract for a house of interest. Then one immediately turns around and sells that house or the contract. Most often the buyer of these types of properties are those that want to buy a house cheap. Then fix it up and sell it for a profit.
Is This Allowed?
Every state has its own rules as to whether one can buy and sell houses this way. If they are not a licensed real estate agent. Each person interested in this has to check their State laws to see if it is permissible.
What is the Purpose of Wholesale Real Estate Investing?
The purpose is to make a reasonable amount of money with as little effort as possible. These type of real estate dealings are becoming quite popular. For several reasons.
- They are often a solution for the individual who wants to sell their house quickly. But their house is in poor condition. There are no expectations put on the seller to have their house inspected for the sale. Also, it is a cash deal so the seller gets all their money up front.
- For the Real Estate Agents who have these type of listings they can be time consuming, with very little profit. Being as they have to be sold for less than market value. Being able to sell to a wholesale property investor really makes it easy for them. There are no conditions being put on the house. No concerns about having to wait for financing approval.
- For the investors that are into the fixer uppers the wholesaler is a huge time saver. Trying to find these types of homes is time consuming. It means have to always be on the lookout and constantly searching all the various resources. If they are aware of the property wholesalers it is just a matter of checking out what they have available. It is quick and easy. Those that are fixing up houses want to concentrate on getting their purchase fixed and back on the market.
This type of system works for all parties. If they have reasonable expectations about what the value of the home is. The home owner is usually happy to come out with something over and above their expenses. The realtor is making money even though less than what would be make on a standard type home. The individual that is going to flip the home is still going to get the house at a good price. Maybe not as much as if they bought the house directly. But, they have saved on time, and time is money to these investors. Everyone comes out with a profit that they are satisfied with. Usually with traditional selling everyone wants the top dollar which quite often never happens anyway.
How successful Can One Be?
There are a lot of individuals that entering into this type of property investment. One individual shares his success stories who was able to use the MLS as a resource for finding properties.
There are many more examples of this. This example is how twenty investors who are do very well are sharing their success.
The Right Approach
Don’t get caught up in the frenzy of everyone being an expert at this. Then pushing their educational products on how they can lead you to success. Becoming knowledgeable is going to be important. But, go about it the right way. Look for trustworthy courses and training. Or speak directly to some credible wholesalers who are going to guide you in the right way.
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