How to Wholesale Real Estate Part 2
You can wholesale commercial and residential real estate. Wholesaling as it’s known in the business is simply the assignment of contract.
Once you have lined up your cash buyers, all that’s left is find a property under market value and getting it under contract.
The key is developing relationships in the markets you want to be in, finding good deals, and getting them locked up over the phone or in person as quickly as possible.
It’s all about speed to lead.
Understanding Laws in Your Area
The first step is understanding the laws in the area you want to wholesale in regarding assignments and double closes. You can talk to an attorney or title company that works with investors.
Educating Yourself and Earning Credentials
Next you need to educate yourself on the business and your market. You really need to immerse yourself and learn all you can.
Join online REI meetups, and network with other experienced investors through Facebook Groups, and so on. While you do not need a license in most states to do assignments, some are now requiring it.
If you are going to get serious and make this a solid business, you should consider getting your Real Estate license.
Finding Cash Buyers
Start with finding cash buyers.
You will learn a ton from them and as you build a relationship, they can potentially become a private lender or even partner with you on some deals down the road.
Different types of cash buyers are flippers, buy and hold, subject to and lease option. You need to find several of each type of buyer and learn what they are looking for.
Best way to find cash buyers is networking through:
- REI meetups
- Masterminds
- Facebook Groups
- Realtors
- Title Companies
- Closing Attorneys
- Property Management Companies
- Craigslist
- Bandit Signs
You can also search real estate transactions in your tax database. Look for entities and individuals that have bought multiple properties.
You may need to search by the address of the buyer as they may change their name or the name of the entity on each purchase.
Finally, buy lists from companies like list source REI software companies that have a cash buyer search feature.
Finding Motivated Sellers
Some of the best ways to find motivated sellers is to set up:
- A Motivated Seller Website
- SEO Strategies
- Pay Per Click Ads
- Facebook/Instagram Ads
- LinkedIn Ads
- YouTube Ads
- And Other Forms of Online Ads + Social Media
You can also do direct mail. Purchase and compile lists from city and county of people who are:
- Over 65 and have owned their house for more than 10 years or
- People who are 60-90-120 days late on mortgage, pre-foreclosure, delinquent taxes, water cutoff, code violation, probate, divorce
Other methods are:
- Driving for Dollars
- Having People Driving Dollars for You
- Door Knocking
- JV with Wholesalers
- Craigslist
- Realtors
- FSBO Sites
- Expired Listings
- Foreclosure Sites
- Putting Out Bandit Signs
- Billboards
- Newspapers
- Other Offline Publications
- Radio/TV Ads
And so on.
Closing Thoughts
These are just some of the ways to get going in the business but the key is consistent focused action on one or two strategies and stick with it. When you find a strategy that is working well you want to double down on that and scale from there.