Why Buy Wholesale Real Estate?

November 30, 2010 by · Leave a Comment 

Many often overlook wholesale real estate when thinking about investments, however, there is little doubt that it is a vibrant industry that makes up a large portion of real estate transactions. It allows investors to buy properties at pennies on the dollar and there is often a really great deal – and profit – to be found in doing so.   Many “pros” will advise that the trick to wholesale real estate is to buy properties that may be considered “distressed”.  Once these deals are closed, the savings are then passed on by quickly selling – at a slight profit – to purchasers who may not be in as good a position to be a wholesale investor, so they too can make a profit on their own investment.  Sounds like a great deal and simple enough, right?   

Well, there’s no doubt about it:  it is!  Why then isn’t everyone cashing in?  Being “in the know” is a key factor in wholesale real estate success.  Perhaps the biggest challenge is in constantly prospecting and locating the types of properties that will yield profits to begin with. There are several ways to do so:

Look for short sale or pre-closure type properties – these can be found through a real estate property agent.  

Network – Work directly with the type of individuals most likely to offer these types of properties: rehabbers, homeowners, landlords, etc.

Bank REOs – these can be found through real estate property agents as well.

Volume purchases through different banks or institutions. 

By taking the above steps to uncover opportune investment properties, staying motivated, and keeping in touch with real estate procedures, financing, laws, and the local market, wholesale investing can reap a great reward.

How To Get Started

If starting out in this type of endeavor for the first time, it may help to partner with a more experienced investor than you.  Many more experienced investors would be willing to work with a “newbie”, sharing tricks of the trade in exchange for the bit of leg work and research needed in acquiring discounted properties.  Contacting a real estate agent is another big step in establishing a consistent source for wholesale properties and being privy to current market opportunities.  

If you’re up for learning where to acquire wholesale real estate and how to finance it, and have the willingness and ability to be consistently motivated, you will soon become the source of profitable real estate investments through wholesale real estate.  

About

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!