10 Things To Know About Wholesaling!

Wholesaling is the bread and butter right now. All real estate investors are doing this because it is fast and all you have to worry about is quantity not quality. The reason is you're selling to investors mainly, and home buyers and a far second. All you have to do is set up a functional web site that you can list your property with details of your home and and place where other investors can give you their contact info if they want to buy. So here are the good facts:

1) Direct Mailing. Get a hold of a web site or newspaper that shows you people who are going to be in foreclosure or are in the process right now. These are your motivated sellers. Let me put it like this. If you get a 1% return of your direct mail you have done a good job. You send 100 letters or postcards and you get 1 call from someone who could make you potentially $10,000. You spend about $55 dollars in mailing to make $9,945! that is a great return. Now imagine if you can follow that 1% and mail out 300 letters. You would get 3 deals based on your statistics. Sounds good to me.

2) You are going to have to familiarize yourself with the Short Sale process/package. This will be explained in the next article but your profit margin much greater when you can get homes way below the FMV (fair market value).

3) Look for properties or neighborhoods that already have equity. You can buy the property from the owner for the loan amount and sell for 10k more to an investor who wants to fix-n-flip. This is the hard part right now sine the market is so bad right now. You are just going to have look harder.

4) Go to your local REI meetings. These guys/gals are all your potential buys. They are pre-qualified and are looking for properties all the time. If you build these relationship with these buyers you can sell very fast and that is what you want. Quantity instead of quality. Leave the quality up to them.

5) Use a newsletter system on your website. Send the newsletter once a week with the new properties you have acquired and this will build you a buyers list. This and the meetings you go to.

6) Keep your buyers list updated. Have each persons preferences about which houses, neighborhoods, or cities. How many bed/baths they like to buy. price range is a big one. Make sure your homes are all reasonable.

7) Once you have a massive buyers list. Do not purchase a home to wholesale until you know someone wants it. Your newsletter and website will tell you if someone wants the house right away. Then buy the house and sell it the next day. Pretty slick system.

8) Don't worry so much about the minimum of $10,000 after your first deal. Remember that a 5-7k deal is just as worth it if you can sell to one of your buyers the next day.

9) Always leave your stamp on everything you do. Once you've sold a property, advertise it. Your name/website has to become familiar with everyone in your target area/s. Why go to a realtor when you can sell them something for 50-60k lower than the neighborhood value?

10) Get outside once in awhile. Spoil yourself every other deal. You can get so wrapped up in mailing or calling people in foreclosure that it feels like a prison. Remember you started doing this for a reason, to make money.