Many people believe that real estate is a way of making good money in less time. There are a lot of people who have and are getting financially benefits out of it. One good way to achieve this is by becoming a real estate wholesaler. Just like Tom Krol Wholesaling, there are many real estate wholesalers who are doing well in the business. If you are new to this term or business, then www.biggerpockets.com/renewsblog/2015/01/31/ultimate-beginners-guide-real-estate-wholesaling-2/ can be an eye opener for you.
Some of the main advantages in becoming a real estate wholesaler when compared to that of a retail wholesaler are:
· There is no need to invest huge amounts to purchase stocks from any manufacturer.
· It is not required to even buy any stocks
· Warehouse space is not required.
· No transportation for movement of goods.
· You don’t need any employees.
· Insurance or warehouse taxes are not necessary.
To become a real estate wholesaler, you don’t have to spend a lot of time and money on so many parameters mentioned above; you only need a deep knowledge about valuation of property. If you are able to market the property and have a good hand in negotiations, then you are sure to see success.
Role of a real estate wholesaler
A real estate wholesaler is the connect between an owner of a property that they are willing to sell it and a buyer. The property owner could be selling it due to undervaluation or distress. The buyer could be a temporary or a long term investor.
Know your investors
The skills like locating any undervalued property, getting the details and portraying them to ideal buyers in an attractive way is the only investment that you need to bring to the table.
Simple investors: Since most of the buyers are investors, you need to understand that they will be keen on buying properties that are below the present market value. In simple terms, they want to make profits even while buying a property. So you need to look forward to sell only undervalued property that will get the buyer and you some good profits.
Fix & Sell investors: As the name indicates, these are people who buy an undervalued property only to fix the issues in it and sell it later on. For such buyers, you should make sure that the after repair value of the property will give good money for the buyer and you.
Rental investors: These buyers are long time investors who are looking to buy the property to rent it out so that they get a good monthly return on the investment made. For such buyers, you should be able to make them understand the local market, the state of rental income that is prevalent in the locality and also give them some hints to the prospective tenants who may want to rent the property.
Real estate wholesaling is one type of work that you can do either with minimum or even no financial investments. The most important investment that you need to make is your time and effort!