Wholesale Real Estate: What You Need to Know To Make Money in 2022

Wholesaling is a nickname used to describe a type of real estate investing or transaction where the investor buys and sells an interest in the property without holding it.

Assignment Vs. Double Close

Wholesalers typically use a double close or an assignment of the contract to sell the property. The investor buys the double property close and immediately sells it to the end buyer.

Benefits to Wholesaling

1. Wholesaling is a short-term strategy that an investor can realize benefits from quickly. 2. It does not require a large pool of capital to get started in wholesaling.

Negatives of Wholesaling

1. By selling the properties without holding them, wholesalers short-circuit one of the best ways to build wealth in real estate. 2. To be successful, a wholesaler must accurately determine the ARV and estimate rehab costs to determine a property’s value.

Skills Required for Wholesaling

To be a wholesaler that can get a high percentage of deals to the closing table over the long run, you need a big picture skillset than just negotiating contracts with sellers. You need to see the end-use and work backward from there.

Marketing Directly to Sellers

Here are some of the most popular advertising channels used by wholesalers: – Direct mail – Cold calling – Door to door marketing – Social media advertising – SEO – Radio ads – TV ads – Billboards

How to Get Started Wholesaling

There are two main aspects to work on to get wholesaling at a high level. The first aspect is to get the deal flow going. You can do this by starting a marketing campaign for potential home sellers. The second aspect is to build a buyers list. To make a buyers list, you will be identifying active real estate investors in your area and seeing what kind of properties they are looking to buy.

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