What makes a good or bad property wholesaler? What is ahead for the wholesaling industry? What Do Real Estate Wholesalers Really Do? Just like every industry ever, wholesaling is all about buying low and selling at a discounted price.
Popular business model? Costco. Property wholesalers focus on acquiring and contracting to buy homes and many other forms of real estate at discounts then provide a service by selling them on. Obviously the premise of wholesaling is often volume, but you could do this at any scale. From a few deals a month to flipping hundreds of properties over the course of the year.
So, why aren't wholesalers appreciated? Misinformation, some criticize that wholesaling “isn’t real investing.” since wholesalers may not always have to invest their own money to buy these homes before reselling them. A lack of knowledge about real estate investing, buyers think they can save somehow by going directly to the sellers, or prejudices from being offered poor deals in the past by real estate wholesalers.
Great real estate wholesalers:
Work diligently to sourcing great opportunities
Have and continue to build connections and relationships that others don’t have, or would otherwise take ample time to cultivate.
Contain great information sources.
Can provide a steady stream of deals to investors.
Can be more efficient at marketing and contracting on properties.
Provide access to discounted property deals.
Who Should Buy Properties from Wholesalers?
While the most obvious buyer of wholesaler properties is rental property investors. They aren't the only ones who are benefiting from wholesaler property deals. The majority of ‘flips’ are being sold to retail buyers and regular homeowners.
Nowadays, regular home buyers don’t mind doing DIY renovations and work hard at finding wholesale deals that just need cosmetic makeovers. Now, if you happened to have a property wholesaler that gave you a steady stream of discount deals, that's just reliable, efficient business. Not to mention, the speed and volume of deals that can be done when working with wholesalers speaks for itself in effectiveness.
Who Should Sell their Properties to Wholesalers?
Homeowners in foreclosure
Property owners behind on mortgage payments or property taxes
Lenders that have taken on the property in foreclosures
Sellers in divorce situations
Sellers wishing to save on the cost of marketing or fixing up their homes
Wholesalers are usually cash buyers that move extremely fast to close on properties, wholesalers don’t have a problem acquiring distressed properties and for
property sellers its a efficient way to get out of debt, gain in hand cash quickly and even avoiding legal actions that would deplete their equity or take the property from them.
Wholesalers can and will only get more popular as we enter this rise in real estate growth. Why? With this new rise property owners will be looking forward to finally unloading those extra properties they acquired that have become burdensome, rundown or just neglected. We are reaching a time when less is more and current property owners are working smarter to get ahead. Why maintain several properties when just a few can still accomplish the fiscal growth you are working towards.