The joy of wholesaling and remodeling homes

Wholesaling is often exciting to new real estate investors because it is a niche strategy that can make quick profits for people just starting out in the field of real estate investing.

What I like most about this technique is that it offers equal conditions for everyone, with or without experience. A newcomer or even a seasoned investor can start using this strategy to get paid quickly without the need for credit, cash, lenders, contractors, a 401-k, an LLC, or much else.

Wholesaling real estate or selling homes for cash is when you act as an intermediary between a motivated seller, looking to get rid of their property before an impending foreclosure or perhaps divorce, and a motivated buyer looking to take over the payments on a property that they expect to appreciate rapidly in value or one that they hope to make repairs to that will force the value down. You earn money by charging a fair amount, an “Assignment Fee” on each sale. Move property quickly, often transferring ownership from motivated seller to motivated buyer at closing. Of course, there are a few things to consider before embarking on what could be a very lucrative career.

Visualize your successful wholesale business and personal life first

Get comfortable with your hopes and dreams because they are yours and they don’t matter to anyone else like they matter to you. The mind is a powerful thing and when that mind meets the law of attraction… much can be granted and achieved.

I remember how it happened to me. I went to my first real estate training seminar and left there a newbie on steroids with absolutely nowhere to go…but my mind was buzzing with everything I had learned during that 3 day boot camp. My head felt like it was literally stretching and expanding… I was growing. In hindsight I now know that it was because of this growth that I couldn’t get all this new knowledge to calm down or even allow myself to sleep without dreaming of “doing numbers” and I was also seeing all kinds of houses in my dream. Most importantly, I saw myself happy and prosperous in my newly chosen field. My passion for real estate investing fueled my conscious and unconscious thoughts and I was determined to see it through. So, I am a true believer that before you do something, you must first “see” it. See it in your mind’s eye, see it in your dreams, and then keep it in your heart. We all have hopes and dreams that extend beyond the money-making aspect of running a profitable wholesale business…right?

Remember to see yourself doing those things too… whatever they are. But don’t stop there. You have been educated, you are empowered and at this point… you must execute.

Make a plan – this is your business, not your part-time hobby

Benjamin Franklin said, “Failure to plan is planning to fail” and this is especially true in the real estate wholesale business as well. And I say business because that’s what it is, a money-making business where you expect financial rewards for the time and effort you put into it. It may start out as something you do part-time, but that doesn’t mean it always will be. Therefore, you need to start by setting goals and setting goals to reach those goals. Things may change as your experience grows and you learn new methods to quickly locate, buy and sell properties for a profit, but having a good plan from the start will keep you focused on the short term.

Let wholesale become your life – make it happen

If you really want to make money in real estate and, in particular, in wholesaling real estate, you have to make it happen…make it a part of your life. The best athletes train hard, the best musicians practice tirelessly, and the most successful real estate investors always work and study to improve. This means reading books, newsletters, and websites; listen to tapes and CDs; and watch DVDs that can help you transition from your 9 to 5 job with confidence. Become obsessed, especially at first, with learning everything you can about selling wholesale real estate and mastering the business.

Find your market

Do some research and select 2 or 3 good neighborhoods or a part of town that you know offers the best potential for making a good profit and work, work, work. These would be the areas with a minimum number of days on the market because they are in sought after locations.

Target your market

Choose your promotional materials, your advertising medium to target your growing area. Will you be using signs, direct mail, vehicle magnets, website submission forms, flyers, or maybe a huge billboard or local grocery cart with your name and benefits outlined on the seat flap? Many investors, especially in today’s market, will have to try different materials because what may have worked in the past may not be a good use of ad dollars in today’s market, it’s a different time. You will have to explore what your salespeople respond to and then saturate them with it.

Market, market, market… oh, and did I say market?

Find motivated sellers

The one thing that can set you apart from all the other people looking to make some extra money wholesaling/trading properties is the ability to locate undervalued properties and negotiate a great price with the owner. This requires a bit of legwork and often the development of research skills if you really want to look for deals that other people in the business overlook or don’t really want to spend the effort on. However, there are motivated sellers, and once you know how to find them, you’ll be well on your way to seeing your wholesale profits explode.

Find motivated buyers

Another critical component to completing any real estate wholesale/renovation deal is creating a list or file of people who want to purchase undervalued real estate to repair and renovate or add to their rental portfolio to create an income stream. They are usually builders, contractors or people who are already renting properties in the chosen area. Learn about their clothing purchases, the type of property they like to “flip” or rent. The stronger your list, the easier your task will be and the faster you will get paid through wholesale real estate deals. In my course, I teach my students 3 valuable ways to make sure they’re not adding tire kickers to their list.

flipping the deal

Now is the time to sell your sweet 5-6 figure wholesale deals for cash! It is easier than you think. We have developed an amazing 90 Days to Cash e-course that explains how to build a large database of high performing buyers and also how to sell properties at retail to end buyers.

Wholesaling is a great way for people without a lot of cash flow to start taking advantage of the huge profits to be made in real estate. If you think wholesale real estate is for you, take the time to develop your plan and learn as much as you can about the business before you start. For more information on how to find the BEST deals, check out Wholesale Homes 90 Days To Cash Out.

If you like what you’re hearing about wholesaling/real estate because you now realize deep down that it can help you create a bigger, bolder life than you now own…then don’t. You can’t waste another day. Once you really, really take it for granted (because it is) that this business exists, in today’s market conditions where you can certainly find a property today and wholesale it tomorrow for thousands of dollars… no you have no choice but to do whatever it takes to make that happen… not later but now.

Wholesale pays you now and I guarantee you’ll love it!

Karen