Whether you've taken a few laps around the real estate pool or you're just now tentatively dipping your big toe into the investing pool to gauge the temperature of the market, you owe it to yourself and your future success to work with a wholesaler. Here are 6 ways wholesalers can make you rich and why you need to find a good one -- today.
What is a Wholesaler?
A wholesaler is someone who finds properties, negotiates price and terms with the owner, signs a Purchase and Sales Agreement, then assigns their interest in the transaction to another party – usually a real estate investor – for a fee. Once the investor accepts the assignment agreement, then closing is scheduled, paying the assignment fee to the wholesaler at closing.
Wholesalers Know the Local Market
One of the greatest perils of real estate investing is understanding your local market. Because property values vary so much neighborhood to neighborhood -- sometimes street to street -- it's critical that you know the market. You might know that you're interested in properties in a certain section of your city, but do you know which neighborhoods make good investing sense -- and which ones to avoid like the plague? A wholesaler does.
Wholesalers Find Motivated Sellers
Sellers are motivated by a variety of factors: major repairs, divorce, financial problems, relocation, etc. Regardless of the reason a seller have a strong motivation to sell, the fact is -- they do. Wholesalers pound the pavement and spend thousands a month to find motivated sellers through multiple methods:
- Referral fees
- Internet advertising
Wholesalers Know a Good Deal When They See It
Regardless of your current level of real estate experience, one of the biggest challenges you face is knowing whether a property might make a good investment. Wholesalers see a lot of properties, so they've fine-tuned the property acquisition process. Not only do they know a good deal when they see it, but they also have an almost innate ability to recognize a bad deal -- at a glance. This can save the time and effort of pursuing properties that wouldn't make good investing opportunities.
One of the least palatable aspects of real estate acquisitions is negotiation. Think negotiation is tough? Throw in a laundry list of seller problems – major repairs, divorce, relocation, job loss, etc. -- and negotiation gets even more challenging. A skilled wholesaler is part real estate dynamo, part psychologist. By being able to differentiate between seller wants and needs, and how to walk the fine line of negotiating a fair selling price for property without getting too wrapped up in the very real human emotions involved in these kinds of sales, negotiators are able to convey to sellers the economic realities of the property being discussed.
Wholesalers Crunch the Numbers
Real estate investing is theoretically paint-by-numbers easy. But it also comes down to the number on the bottom line. This is where a competent wholesaler earns their fee -- and proves their value by:
- Providing a complete (and compelling) description of the Property
- Ensuring the investor has access to the property
- Putting together accurate figures showing purchase price and after repair value estimates
- Compiling a rehab budget with total project costs
- Showing the investor how much profit he/she stands to earn from the deal (based on his/her figures)
This is a laundry list of potential deals. Done correctly, the potential for profit is enormous. Unfortunately, far too many investors try to handle these tasks themselves. Unless you know what you're doing, you can do much more harm than good. A good wholesaler has a great understanding of the property acquisition process and is skilled at building a compelling case for properties based on only one question: Will the property make money? If it does, he moves forward; if not, he steps away from the deal in pursuit of better opportunities.
Wholesalers Go Where the Money Is
While wholesalers serve a number of vital functions for real estate investors, they are motivated by money. If you demonstrate the ability to close on profitable deals brought to you by a good wholesaler, you'll never have a shortage of available properties. Once word gets out that you're interested in a certain type of deal, wholesalers will be competing for the right to bring you as many deals as you can handle.
These are just 6 of the ways that wholesalers can make you rich. In the end, though, the ultimate decision rests with you. Would you rather do all the legwork yourself -- or does the thought of only doing those things with the potential to change the landscape of your financial future appeal to you. I recommend you think about your wants, your needs -- and your goals. Wholesalers can be the missing ingredient to your success. Find a great wholesaler today. Reap the rewards available in real estate today.
Joe Abbascia helps real estate investors at all stages of their investing careers to learn effective strategies to buy properties wholesale and capitalize on profitable opportunities. Profits are available in any market. You just need the right tools. Learn more about Joe and how his unique investing style can help you reach the pinnacle of success by visiting PropertiesCentralWholesaleDeals.com – today.