LEADING DESTINATION FOR THE MOST
FORECLOSURE AND PROBATE LEADS
How to Wholesale Real Estate
There are many ways to invest in real estate. You can buy a rental property, get a worn down home and sell it for profit after renovating it, or wholesale it. All of these options have some advantages and disadvantages, which is why it is important to understand each one of them fully before deciding what is best for you. At Foreclosuresdaily.com, we help by providing a list of up-to-date leads. You can look at different kinds of properties available and find the best possible deal for wholesaling.
What is Real Estate Wholesale?
People who aren’t a part of the real estate industry tend to misunderstand the word ‘wholesale’ in this context. In a retail context, wholesale means selling bulk items at a discounted rate. This allows buyers to sell the items in a retail setting at a higher rate. Wholesalers charge a lower rate because they earn a lot of profit through a bulk sale and save money in the process as well.
Wholesaling is just a way for agents to earn a profit by getting into a contract with the seller and buyer. It is a short-term business strategy that helps real estate agents earn a substantial profit. Here's a look at how it works:
- An agent contracts a home from a seller for a specific period. These are usually distressed homes like those destined for foreclosure. The seller wants to get rid of them quickly and still get a reasonable price for them.
- Wholesaling is different from buying and selling because the agent doesn’t need to invest any money in the deal. They make an agreement with the seller about finding a buyer and get profits from the sale.
- The agent must find a buyer for the property within the contract period to get the profit. If they can’t do that, the contract is void and the seller can look at other avenues.
- The seller and agent agree on a price for the property. The agent then sells the property at a marginally higher rate to a buyer. The difference between the two quotes is their profit, which is what make wholesaling deals worthwhile.
Wholesaling is a great option for real estate agents with good connections and the ability to convince people. If you want to get into real estate investing but don’t have the resources to invest directly, wholesale real estate is a good option.
Skip Tracing Real Estate
Finding wholesale leads is just the first step in a long process. You need to contact them and get their agreement as well. This process is called skip tracing in real estate. It involves finding the contact information of property owners and prospective sellers. If you have the contact information, you can get in touch with a letter, email, or phone call to discuss the property and its potential.
Skip tracing is a complicated and time-consuming process. It involves looking at court and public records, matching information with the leads you have, and then making sure the information is accurate. Most real estate agents end up contacting hundreds and even thousands of prospective sellers only to get most of their letters back as undelivered.
House wholesalers need to wade through a lot of unfiltered and unreliable information to find what they need, which can be discouraging. We make skip tracing easier by providing verified leads. Our team conducts comprehensive research into the information to make sure every bit of it is accurate. Prospective wholesaling agents can start preparing their sales pitch and get the deal with it goes off the market.
Our information increases your chances of success and allows you to find the right people. You can simply Google the name and address mentioned in the leads or use other free resources to find a way to contact them. There are fewer dead-ends so you can work on more properties. The more information you have, the easier it is to find the owner.
Who Is Wholesaling Online For?
Wholesaling online is a very lucrative field but only for the right person. While we do provide great leads and it is easy to find prospective sellers online, agents still need to know how to identify a good opportunity, come up with a good script, and convince sellers to use their services. Here’s a look at who can benefit from wholesaling in Arizona and beyond:
- Knowing Where to Look – Real estate agents with experience in the field always look for owners of distressed properties. People who are facing foreclosure or have a probate property want to sell quickly and will be more willing to hire a wholesaling agent. People who aren’t in a hurry will stick with traditional realtors because they are willing to wait for the right deal.
- Communication and Marketing Skills – There are hundreds of wholesaling real estate books available today, but you need to have some innate communication and marketing skills to succeed. If you can convince people to part with their property for a good price, you can succeed in this field.
- Assessing the Property – Agents should also know how to access the property and identify its weaknesses. Some homes will need a few repairs or upgrades before you can find a good buyer for them.
Finding good wholesaling deals is the first step in a long process but the end rewards are worth the effort.
Why Choose Real Estate Wholesale Over Flipping?
There are several reasons why people choose real estate wholesale over flipping. While house-flipping does have the potential to deliver more profits, it also requires more commitment. You need to buy the house, invest money in improving it, and then find a buyer who will purchase the property at the right price. There's always a risk of not getting good returns on your flipped property.
Wholesale real estate is different people you don't need to pay any money upfront and there's no need to invest in repairs. Agents just need to find a good buyer within a specific timeframe and convince them in order to get a profit.
Want to know more about wholesaling online? Get in touch with us at Foreclosuresdaily.com. We’ll be happy to help.