5 Strategies If You Are Considering Buying Houses Wholesale
Are you thinking about buying houses wholesale? Many real estate investors that have been in the flipping market are now seeing an opportunity to jump into wholesale real estate.
What does it mean to buy a house wholesale?
Buying house wholesale is like flipping homes without all the work that is involved in when rehabbing a home. Instead, you work out a deal with a home seller that is looking to sell their home “as is” at a lower than market value.
The best wholesale deals are done with sellers who have a lot of equity in their homes but need to put in a lot of money in to sell for full value.
Once you have worked out the deal with the seller, now it is time to find your real estate buyer. This is typically going to be someone who wants to flip homes. This is where your knowledge of the rehabbing (a.k.a. flipping) market will come into play. You know approximately what percentage off a home’s full value a rehabber will spend for a home. You can then work the deal to both your advantage and the rehabber.
With a few signatures, you sell the home to the flipper, the seller gets their money, and you pocket the difference for negotiating the deal. Not too shabby, right? Now you see why many flippers are buying houses wholesale now.
If you are interested in buying houses wholesale, we have developed 3 clear strategies that can help you get started.
Utilize Your House Flipping Network
If you have experience flipping houses, chances are you know the rehabbers in the area and the kind of deals they like. You can utilize them in a few different ways.
- Target the homes to buy that you know they like to rehab, this way you are almost guaranteed a buyer on the property.
- Once you have a property, leverage your network to float out the property to different peers. It will be easier to utilize who you know than find new people.
Remember, Your Seller is a Person
It is important in real estate investing to remember there are always 2 sides to a deal. The person you are buying the home from doesn’t want to feel like they are getting ripped off. This could have been the first home they ever bought or it could have been where they raised their children. You never know the situation, so it is important to get a good deal but it is also important to not insult your seller. Ultimately, this could leave them feeling upset and not willing to sell you the property.
Have a Clear Business Model or Niche
Focusing on one market or area can help you grow your business and brand. If you want to be known as the waterfront wholesaler, then go for it. This will keep your buyers coming back to you for new deals. This means there is less work for you!
Buying houses wholesale does not have to be complicated but you do have to have a vision for what success means to you. We want to help you get started and answer any of the questions you have surrounding wholesale real estate. We have been where you are and can help! Give us a call today.