Wholesaling real estate is a great way to make tons of money relatively quickly. In fact, wholesaling real estate can even bring in more money than traditional real estate investing in some situations. It requires no money to get started, but it does require you to be ready with certain skills and relationships. Before you get started in wholesaling real estate, you should ask yourself some questions to make sure you’re ready:
1. How good are your negotiation skills? Wholesaling real estate is all about being able to work out deals with buyers and sellers. You’ll need to find a seller and convince them that you can sell the property faster than they would be able to on their own. Then, you need to find a buyer who doesn’t have the time to hunt down his own deals and convince him to buy the property for more than your contract price. You’ll need a great sales pitch and top-notch negotiation skills.
2. Do you know lots of real estate investors? You’ll need to be “in” with the real estate investing crowd to pull off a wholesaling business. Real estate investors will make up most of your clientele, so make sure you have a big list of potential buyers before you get started.
3. Are you familiar with your neighborhood? The best way to get started in wholesaling real estate is to know a lot about a particular neighborhood, including property values. Starting small can help you develop a niche – then you can start to expand.
4. Do you have lots of knowledge about a certain type of real estate? Along the same lines, you can also build a niche by working with a certain type of real estate. Whether you work with commercial or residential properties, it can benefit you to focus primarily on one type first, then build your empire slowly.
5. Can you work quickly and under pressure? Wholesaling real estate involves doing a lot of work quickly. Depending on the contract you make with the seller, you may only have a few weeks to find a buyer for their property. You’ll need to work under pressure and on a tight timeline.
6. Do you have a strong relationship with local companies? You’ll need to have a good relationship with a local real estate attorney or title company in order to make your deals happen quickly. Find someone who’s willing to work with as much energy as you and you’ll be in good shape.
As a wholesaler, you’ll need great relationships with people, amazing sales skills and the ability to stay focused under pressure. Anybody can be a wholesaler – just make sure you’re ready first.
