Guide to Wholesaling
Updated: Feb 16, 2019
Real estate investment is on the rise as the industry grows and the economy improves. As the economy improves, it is a good idea to invest, and wholesaling is one of the many ways to do so. Wholesaling is when the owner of a house contracts the property to a wholesaler or investor who will have the connections to sell the property faster and for a good price.
To get started with wholesaling: first, you should establish networks and connections. LinkedIn is a great site specifically made to help people from various work fields and experience find and make connections with others. You can follow and network with TPS by clicking here. Chamber of Commerce meetings can also be helpful when making connections. Chamber meetings are ways to promote and further the interests of businesses. They are known for networking and connecting businesses in local areas. Other ways to make connections include promotional posts on social media such as Facebook and Twitter.
Finding a home that is on the market under price in a good area is crucial because it allows the wholesaler to mark up the price slightly higher to make a profit. Homes in good areas tend to be expensive; therefore, one should search for homes in need of renovation or updating. These can make the homes in good areas more affordable for investors on a tight budget. These are the types of houses that investors should seek. Having established connections can increase the speed at which the property is sold.
Benefits of wholesaling include the possibility of making a large profit, building a solid network, and establishing your own brand. When wholesaling, the beginning can be a challenge, but after establishing a brand, it becomes easier. Something that can help speed this process is having a networking strategy. This can include people that can refer your brand to new areas helping it expand faster. Profits come from branding, once the brand is established and reviews are good, business opportunities will start flowing in.
Establishing a brand is important to attracting a more continuous and steady flow of business in the future. One way of doing this is by doing work for neighbors in the community. Another is to do outreach and asking others to leave online reviews. Doing this can spread your name and company, making it easier to attract customers and become more well-known in the community.
Like anything else, wholesaling comes with challenges. These can include the difficulty of selling a property and a lack of resources. Connections can help both of these, and through the use of social media you are sure to spread the word of available properties quicker than ever before. Ways to do this include purchasing social media ads, which are budget friendly and effective - if used properly.