Some may believe that buying and selling real estate as an investor is simple. Well, there’s a lot involved in a real estate transaction and understanding all the steps involved can be a lot for a new investor to handle.
When it comes to learning about real estate deals, the marketing and how to fairly negotiate with sellers, wholesaling properties can be a great way to get started.
Below are the four best ways to wholesale properties in Texas.
Develop a Network of Buyers and Sellers
Folks who are new to the wholesaling business fear that they are in competition with other investors. However, the relationships you develop with other investors is essential to your success as wholesaler. A solid network of wholesalers, flippers and investors will become incredibly valuable to you since they can find ways to unload your properties and also teach more tips and tricks of the trade.
A great way to meet people active in the wholesaling business is to attend real estate investment club meetings. This is reason why these groups exist – to network! You will be able to meet all sorts of real estate professionals active in the surrounding areas who are looking for deals! One of the key benefits of a club is being able to find investors who have or want opportunities just outside of your immediate areas. This could be a valuable group as you expand your business. Be sure to bring plenty of business cards!
Present Buyers With A Plan
Be prepared to show any prospective buyers the value in your deal. It is your job to show them that it makes sense as an investment. Prepare a market analysis of the property, create a list of comps, prepare a scope of work along with rehab costs and show them pictures. Make it easy for the buyer to see the return on investment and make a quick decision. Sure, the buyer will want to do his own due diligence but you’ll get more interest in any property by simply having all the details in order.
In other investment opportunities such as the stock market, the investor doesn’t usually trust the word of his stockbroker. He must do his own analysis before making a final decision. A successful real estate investor will be able to understand how to make any property profitable. You’ll get a better reputation for wholesaling when buyers know most of the work is already done for them and they simply need to confirm your research.
Partners are an important part of the deal process, particularly if you plan on scaling up your business. Initially, you may not want to share profits with other partners, but if done correctly, having partners can help you make more than if it was just you. Having partners allows each you to focus on what you are the best at such as marketing, negotiating and the disposition of your properties. This increases your chances of finding and obtaining more properties to wholesale.
Partnerships will reduce the burden that comes with each transactions, this is especially true as your business expands into other markets and other areas of real estate investing. It’s a simple divide and conquer approach with each person great at what they do and focusing on strengths while learning more about their weaknesses.
Invest Back Into Your Business
Wholesaling is pointless if you don’t make any money. Wholesaling has some costs involved even though you may not be investing large sums into property rehabs. Investing in your company is the best way to grow. But be smart about this and try to keep costs to a minimum.
There are many ways to invest in your wholesaling business. Pay for real estate classes and join investment clubs. Pay for advertising and presentations. Hire an assistant to help you with repetitive and time consuming tasks so that you can spend your time on activities that will make you money. Wholesalers need to be out and about to know what is going on and find the great deals.