3 Ways To Make Money in Wholesaling
If you’ve been around real estate for any amount of time, you know there are so many different directions you can take your business and career. You can decide to be traditional broker. You can focus on being the buyer’s agent or the seller’s best buddy. You can choose to work independently or be a part of a team of amazing real estate professionals. With all of these choices, I want to share another possibility for you to think about.
Real estate wholesale.
Is this something you’ve been doing a little research on in your free time?
Well, if you’ve never heard of it or you’ve peeking through a few resources to learn more, I have a few things I’d like to share about real estate wholesaling. First, let me explain what real estate wholesaling is. A real estate professional is wholesaling when he or she decides to sell properties to long-term rental property investors, professional flippers, or below market value property investors.
There are several ways you can get into this market.
Find and buy properties below market value to sell to potential investors.
Complete the double-closing process and sell the property to gain a profit.
Simply connect investors to their dream wholesale property.
Now, I know you’re probably asking how this is different from simply being an agent. This is different because you now have a connection to investors who are looking to buy more properties more often from a wholesaling agent like yourself (or your future self). You will be able to connect properties with buyers from an investor’s perspective instead of working through the the many nuances of assisting non-real estate professionals through the buying process. While both processes are satisfying, assisting wholesale side of things may offer you a new stream of income and a new clientele to serve.
Here are a few other things to remember when considering to enter the real estate wholesale arena.
Know about the possible renovation costs if you are hoping to work with home flippers.
Understand possible profitability numbers such as resale profit if you are hoping to work with property investors.
Study the demographics, neighborhood statistics, and profitability stats if you plan to work with long-term rental investors.