So you want to learn how to wholesale real estate. Are you sure that you want to learn this? OK lets get started. First things first, no money will be used on your part to secure the deal. Well…Just a little money.
- First you market to find sellers that want to sell their homes. You will need to get it under market value to be able to sell it to your buyers list for a discount.
- Next after you have the deal under contract and this is usually done by an option to purchase contract, you will need to find a buyer that is interested in buying cheap houses in need of repairs. Most of the time the house will need repairs and because of this, the seller knows that a discount has to be present.
- If you don’t have a buyer you will need to build your buyers list. This can be done either before or after you have a house. You can use online sites such as the Craigslist, Youtube, or even facebook. I like to use bandit signs for everything so what I will do if I don’t already have a list of buyers is place bandit signs all around town with my number so that they can call
Sign a purchase and sell agreement with the seller and receive a binder deposit of $500-$1000 to secure the house. If you have not already done this, get the title checked to make sure there is a clean title and then take documents over to the closing table to get a closing date and get paid.
Wholesaling real estate – Marketing Correctly
That is pretty much how to wholesale real estate in a nut shell. Lets get back to the marketing. If you are looking for sellers that want to sell their homes you can:
- Market in the local newspaper
- Place “We buy houses” signs all over your city
- Get the word out via social media sites online.
What ever you are comfortable with is all up to you. Most newbie’s that are just learning how to wholesale real estate and are low on funds, they use bandit signs. I see nothing wrong with this form of marketing because it is very cost effective and it gets the phone to ringing. Even experiences real estate wholesalers use bandit signs faithfully as a marketing strategy to bring in the calls. You will need to screen these calls or have someone else do it for you.
When you actually sign the option to purchase with your seller, you will be giving them no more than $10. Tell me what other market you can gain control of an asset worth tens of thousands of dollars for only $10? You may be sing WOW, but until you go out here and try it for your self you will see that wholesaling real estate is really a game of numbers. The more sellers you have contacting you about houses that they want to sell the more offers you make, and the more money you make.