Investing In Wholesale Properties Can Earn Quick Profits

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One of the most exciting aspects of real estate investing is purchasing and flipping wholesale properties. In order to wholesale properties successfully, an investor must do the necessary research to find the “diamond in the rough” properties and get them under contract. They must be equipped with a solid understanding of the costs that go into the rehab and be able to mathematically calculate the top dollar that they can pay for a property. They must establish many connections in the industry, especially with retailers so they can flip properties with one or two phone calls.

It just seems too easy. People often hear about real estate investors who recently made $5,000 in 3 days just by finding a property and flipping it. These investors don’t usually divulge into the details of how many hours it took them to study the real estate industry and search through property after property before finding that one diamond in the rough.

Most wholesalers are finding properties by searching databases like the MLS and searching out FSBO sellers who have been on the market for a while. They are looking for certain phrases to indicate that a property needs work like, “investors’ dream” and “needs a little TLC.” To these investors these phrases mean, willing to sell for cheap and take my problem property off my hands.

After finding the perfect investment property contact the owner and ask few questions to determine their level of seller desperation. Only meet with sellers who want to sell and want to sell now. Check out the property and determine the level of work necessary to get the property rehabbed and back on the market. This estimate is where the investor makes their bank. They need to understand the amount of money that the rehabber has to put into the property to get it back on the market and turn a profit.

When negotiating the property, point out the things that need to be fixed and explain that it is going to take some time. Realize that time is money and many rehabbers are relying on hard moneylenders to invest in a property. Take into account these interest rates when making an offer and always give yourself a cushion for any unexpected expenses.

After getting the property under contract, contact retailers who may be interested in it. Get them to take a look at the property and allow them to put in an offer. Assuming that the offer nets a wholesaler around $5000 or more, sign the contract over to them and search out more diamond in the rough wholesale properties.

Asking questions with these few tips in mind will help save real estate investors thousands. For more ideas related to real estate investing, call or visit us a We are the nation’s number one home buying franchise with over 15 years of experience. Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business. Come see us for more information.

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