Wholesale Real Estate2020-10-03T02:04:10+06:00

Wholesale Real Estate

Wholesaling Can Be a Great Strategy For Beginners
Stages of Wholesale Real Estate Transactions
Actionable Steps To Get Started On Your Own Today
How DHM Can Help You Build a Successful Business

Wholesale Real Estate

Wholesaling Can Be a Great Strategy For Beginners
Stages of Wholesale Real Estate Transactions
Actionable Steps To Get Started On Your Own Today
How DHM Can Help You Build a Successful Business

So What Does It Mean To Wholesale Real Estate?

Deciding to get involved with real estate investing can seem daunting at times. There are many types of investment options. Like being a landlord with rental properties, developing raw land, leasing commercial space or fix and flip investing. All of these means of investment and more can be profitable if you are positioned properly to use them. Some of them require a lot of capital, experience and taking on heavy risk. Some of them require a great deal of time. If you’re new to real estate investing wholesaling properties to fix and flip investors is a great way to get started. It doesn’t require much money and will help you grow your real estate knowledge and skill set so that you can expand to other forms of property invresting if you decide that you want to. Who knows though, there are some very successful real estate investors who do nothing but wholesaling. You may decide you love it and the flexibility it provides.

Wholesaling is where you find the deeply discounted properties needed for a successful house flip, get the property under contract and then assigning that contract over to an investor who will complete the rehab and sell the property. Thay will give you a commission for finding and securing the property for them. Sometimes you will hear wholesaling referred to as bird dogging.

Of course, the commission payout will be much less than what you might make on the rehab if you complete the investment that way yourself. But you will not have all the hassles and risks associated with rehabbing a property, listing and selling it. In fact, some investors build a successful business with only wholesaling because it works well for their personality, time constraints and goals. It is not easy, it does take a lot of time, but reaalative to fixing and flipping there is less involved.

The Four Stages of a Wholesale Transaction

A typical wholesale real estate transaction can be broken into 4 stages or steps. You will find that each stage will require different skills from you and like everything else, will get easier for you to do over time. These stages all dovetail into the longer and more involved fix and flip investing business model as well, and refining your abilities on them will pay off for all your investments. The four stages are:

  • Finding a property
  • Finding a buyer
  • Negotiating the deal
  • Closing the deal

Let’s look at each in more detail.

Finding Deeply Discounted Properties

Not every property you find will work for this type of deal. The property needs to be deeply discounted so that there is a margin that will accomodate the purchase and rehab and make the profit fix and flip investors need. It takes a lot of work to find them, so getting really good at this will be the solid foundation your bird dogging endeavors will need.

Properties that will work well for house flipping, and particularly for your wholesale endeavors will not be found on the MLS. You need to get to these opportunities before they even hit the market. You need to find motivated sellers before they list, perhaps before they even contact an agent. Motivated sellers will be those who have apressing need to sell a property- a tax lien, a landlord tired of renting, a family group that inherited a property needinga lot of repair.

Marketing campaigns are a crucial component of your deal finding strategy. You’ll also want to develop a network of referral partners, people like trust or probate attornies, contractors, long term care facilities employees and the like. This referral and marketing funnel will be what allows you to continually find the properties you need to evaluate to see if they merit further consideration and perhaps getting under contract.

Finding Potential Buyers

You will need to be able to move quickly once you’ve found a property, so having a list of buyers ready is crucial. It won’t do you any good to find a profitable deal and then have to let it go because you cannot find someone who wants to acquire it from you and take on the rehab investment opportunity. You  need to build and then just as important, maintain, an active buyers list. When you find a great deal you can reach out to the people in this pool and offer the deal to them. By maintaining an active list, knowing what types of deals various investors want and acting on it quickly you should be able to get someone to grab your deal so that you can make your commission.

Negotiating Your Deal

Negotiating with the property seller and with your buyer are both important components of completing your wholesale real estate investment. Like every skill, you will get better at this each time you work through the details of a deal with the other party.

Closing Your Deal

Getting everything together and ready for closing will take some time, especially on your first wholesale real estate transaction. Make sure you understand the procesws involved here and the laws in your state surrounding these transactions.

Get Started Right Now

So, what are some actions you can take right now to get started? Here are a few ideas:

  1. Find a calendar or planner that you can use for your wholesale business. Don’t let obtaining this item take too  much of your time. You don’t want to get stuck planning and organizing and fooling yourself into thinking you are being productive. It is just a tool you will use, it won’t get you closer to completing your first deal unless you take the actions your plan or schedule there.
  2. You’ll want to find some real estate investment clubs and organizations in your area so that you can begin networking and learning your market. This is an important action toward building your own buyers list. Meetup.com is a great way to find groups and meetings. Look for one that will work for you and make sure you attend that meeting.
  3. Sign up for your free trial of our Investor’s Edge Software. This software will help you locate properties and contact the sellers. It is an amazing resource that will help you accelerate your business.  Sign Up Here.

What Additional Wholesaling Resources Does Do Hard Money Provide?

DHM can provide a number of resources and mountains of information for anyone wanting to wholesale real estate properties to make money. As mentioned above, we have software to help you find properties and market to the sellers of those properties. We have a buyers list available to members of select programs. We have an outstanding calculator to help you determine how much top offer for a property and more. Depending on your level of interest, and the amount of money you want to put toward the tools and education to grow this business we have what you need.

Testimonials and Reviews

“Brittni has done a fantastic job in following up with me and my partner. She is always pleasant and cheerful and displays a positive attitude at all times!”

Eric P., Atlanta, GA.

“I’m only a few days into the process but so far my experience has been great. Steve and Brittni were very encouraging and refreshing and offered great information. I’m looking forward to a long and Prosperous relationship with Dohardmoney.”

Kelvin W., Houston, TX

Rochelle was wonderful. Her presentation was clean, clear and she has crafted the content of the authors intended use of the products. Made it easy….. plus hit Q&A like a marksmen. Thank you Rochelle”

Anthony N., Charlotte, NC
What Is an Assignable Contract?2019-07-28T02:54:24+06:00

An assignable contract is one where you can transfer or change the name on it so that another party, or perhaps an LLC you create if you decide to flip the house yourself instead of wholesale.

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