Wholesale Real Estate Coaching: You must do your homework diligently before you purchase a piece of wholesale real estate property as an investment. Know what is involved and what you will be required to pay for before you start your calculations. It’s the only way to get an accurate estimate of what it will cost you and how long it might take before you see any profits.
Obtaining financing for a wholesale property is sometimes more difficult than it would be for a primary residence. Many wholesale properties are foreclosures so the bank or lender must know of liens or tax liabilities that exist in the home, as well as any gross negligence or damage to the foundation or major systems within the house. Financing on investment property will usually require five or ten percent down. Delinquent taxes may have to be paid for.
Try to get a good look at the house inside and out. You must calculate what it will cost you to get the house to a reasonable standard if you purchase it. Many foreclosed on or otherwise wholesale market homes have been trashed. Some have very serious damage that you will need to repair before you rent it out or try to resell it for a profit. If the house is being auctioned there might be a pre-auction inspection period.
Once you see what the damages are and what needs to be replaced or repaired, you can make a more accurate calculation of what your real costs will be. It’s not uncommon to find that there are things missing from the house that you’d never expect. Investors commonly find everything of any value at all removed from the home. This can include anything from the bathroom sink and faucets to the doors to the kitchen cabinetry. Of course, you’ll need to replace these things before you rent the house or sell it as a rehab to flip.
Know your time line so you’ll be prepared with your fees and closing costs at the appropriate time. Wholesale properties can take one to one and a half months time to close if there is an escrow involved. Having cash will get you a closing in just two to three weeks instead in many cases. If you plan to purchase at an auction, they run for a full day and most places hold auctions two days per month. Check with your local circumstances, though, because each state and county have their own operating schedules and procedures.
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With a list of so many wholesale buyers, like yourself, we also have to have a large inventory of wholesale properties, our properties move fast!
Sign up to be on our wholesale buyers list and be one of the first to be notified when a property that fits the description of what you looking for comes along. It’s that simple!