In the world of real estate, wholesaling is like a breath of fresh air. The luring returns make it appealing for anyone wanting to enter this field.
But that isn’t to say it’s easy.
If your goal is to become a wholesaler, you should be ready to face anything and everything that will come your way.
So here are 3 tips for breaking off into wholesaling!
Tip#1: Set Your Goals
According to Gail Matthews, people with written goals are more likely to succeed than those without them.
The first thing to do is write down your short-term and long-term goals. You can then take the required steps to achieve them.
According to another study, setting specific goals increases your chances of success. So make sure your goals are specific!
You can set numerical targets (revenue, units, etc.)
Here are some examples of what short-term goals you should have:
- Ways to market your business
- Acquiring a certain number of properties each month
- Reaching out to 5 (or so) new contacts every week
Talking about the long-term goals, some examples are:
- Purchasing a specific number of contracts
- Generating an annual revenue of $1,000,000
- Setting a budget for marketing
But to set these goals, you must ask yourself different questions, such as:
- Where do you want to see your wholesale business over the next five years?
- How much income do you want to generate every year?
- How much of your time can you invest in your business?
- Will you actively participate in it, or do you want to partner with someone else?
Answering these questions will help you set your short and long-term goals.
Tip#2: Equip Yourself with Research
The more information you have, the better chances you have of succeeding. So go one step forward and do intense research.
Familiarize yourself with the whole process of wholesaling. Know the ins and outs. Go out there and explore the market and figure out what the buyers and sellers want.
While researching, you should also explore off-market properties.
Search for foreclosures, abandoned, and other distressed properties. They are ideal for wholesaling as you can purchase them for less than the market price.
There are countless resources available on the internet for your disposal. It has all the information you need as a beginner!
But you will also want to consult a real estate agent who has been in the market. Ask them about their successful deals.
Here are some of the many things you should know:
- The home prices in the neighborhood
- Types of properties available
- Legal requirements in the local area
- How much are the buyers willing to invest
- The fix-up costs
Researching will not only help you start but will also build a solid foundation for your wholesaling future!
Tip#3: Determine Your Strategies
Determining your strategies is extremely important to land you an excellent wholesaling deal.
Once you have the property, you need to find a well-thought-out marketing strategy to attract more buyers and close more deals.
Making a buyers list is advised by real estate experts so that you have someone to make an offer to when you find a property.
Most of your buyers will be cash-ready real estate investors looking to purchase rental properties.
The best way to market is by creating a network. You can do so by attending REIA Meetings, promoting through social media, advertising, etc.
Next, you need to decide your exit strategy. There are two ways you can go:
- Selling the contract: The wholesaler sells the contract to the buyer without owning the property and profits only from the process. This is the most common strategy.
- Double closing: The wholesaler possesses the property and takes responsibility for the cost of closing it. You should only go for this if you can’t sell the contract.
There are many things you will learn as you continue wholesaling. But these three tips will ensure you start on the right foot and increase your chances of being a successful wholesaler!