When done right, wholesaling real estate is a quick way to build capital for any investor. But not everyone can be a successful wholesaler. Here are a few of the basics of the art of wholesaling.
What is Wholesaling?
Wholesaling (n): the business of selling properties to retailers, especially in large quantities.
Wholesaling involves acquiring property below market value, and then cleaning up and quickly reselling the property for a higher price.
What does it take be a successful wholesaler?
Having a solid understanding of the real estate world and being able to find good deals are basics and very important in the wholesaling trade. However, the key to wholesaling is to connect buyers and sellers, and in order to be successful in this, you must learn to be an effective marketer. Essentially, wholesaling IS marketing. Knowing how to market well and whom to market to are going make you a successful wholesaler.
Any tips for starting out in wholesaling?
Not everyone has what it takes to make it as a wholesaler; it takes time, a strong understanding of the real estate market, and diligence. Successful wholesalers will all tell you: start slow.
Working with an experienced rehab flip investor to learn the ropes is a great option. If you don’t have this opportunity, get your feet wet by really researching the market. Learn and experiment with different marketing strategies, and when you find one that works, stick with it! It also pays to get familiar with making conservative property repair estimates. It won’t happen overnight, but with persistence and passion, your wholesaling career can really take off!