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.
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.
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.
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.
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.
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
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.