Tuesday, 15 January 2013

Wholesaling Real Estate to Other Investors

Wholesaling Investment Property
KEY Open the door to high tech solutions when selling real estate. One of the newest methods of selling real estate is by installing a low cost FM transmitter.

The simple scale of our Real Estate investing operation out grew our ability to effectively manage renovating and marketing all of the properties we were working with. In short, we were generating far more deals than we could handle without significantly re-structuring the business. At one point, there were over 80 properties purchased and waiting for repairs. Holding costs were out of control. Rather than hiring large numbers of new staff and workmen, and thereby working with far smaller margins on each property we worked with, we turned to utilizing what we had in a different way.

KEY Having a plan in place before selling real estate can save you time and money in the long run. It is a good idea to write your plan down before you sell so that you will be fully prepared for the experience.

Our effectiveness in finding great deals produced more than we wanted to work with. Since then, we have adopted "wholesaling" property to other investors. Also, we no longer concentrate on rental property as we once had for similar reasons, too many properties to manage without a substantial restructuring of our business. Therefore, when we now resell to other investors, we aren't in competition with them. We have actually become a resource and a partner, in some ways, for many real estate investors.

KEY When selling real estate, you should always hire a professional cleaning service to come in and do a detailed cleaning. When buyers walk in, they will be impressed at how things look and are more likely to not be as concerned about how the mechanical systems function, since they can see that the home is spotless and well maintained.

When we use the term "wholesaling", we are referring to reselling properties that we have either purchased or are controlling as-is, at a markup that still allows investors to purchase the property at 50% to 70% of the market value. This has allowed us to overcome the problems of managing renovations on a large scale without substantially changing what we do best. This is a valuable lesson to learn from as it can benefit you in your search for property and investments. It is likely if you are involved in real estate investing to any level, you will run across properties, which are good deals, but for various reasons may not be what you are looking for. Whether it is the location, type of property, etc., that makes it undesirable for you; there is someone else out there who is looking for it.

KEY When selling real estate property, you need to make sure that your potential clients can contact you. Make sure you are available by phone and for property showings and open houses.

Finding that person may be a lot easier than you think, you may already know them through an investor group you belong to. Placing an ad in the paper or working with Realtors are also viable ways to sell these properties. If it's a good deal, it will sell. One thing is certain in the business of real estate investments, the "hardest" part is finding a deal. The rest of it falls into place fairly easily once you have.

KEY If you are taking on a venture in selling real estate for others, make sure that you avoid homes in areas that have a large presence of sex offenders. These days, everyone is checking a great variety of resources in order to determine whether they are around sex offenders, especially if there are children in the home.

How does Wholesaler find real estate investor association or groups in their area? Its easy do a Google search on any of following: Real Estate Investing Clubs, Real Estate Investment Association, REIAs, REIA, Real Estate Investing Classes, Real Estate Investing Groups, Landlord Club, Real Estate Mentoring Programs, Foreclosure Boot Camp, Real Estate Training Classes, Real Estate Seminars, Real Estate Schools, Real Estate Courses, Real Estate Investing Network, Real Estate Conventions, Real Estate Boot Camps, and Real Estate Forums. One tip on this and any investment you do is, don't let greed drive your business. It's the biggest pitfall to real estate investors. Holding out for the most, highest dollar usually results in disaster. Make money and move on.

KEY To make money selling real estate, you have to start by purchasing it in the right location. A neighborhood that is stable or improving, will generally be a good area to attract buyers down the road when it is time to sell.

An old saying in real estate: "One deal can't make you, but it can break you". Take a win - win approach to your business, it does work the best and ultimately is the only way it works.

Ralph Marcus Maupin, Jr. (Mark Maupin), Speaker, Professor, Co-founder National Real Estate Network LLC (REIA), Get Free Real Estate Forms, Terms, Articles and Real Estate Club Locations at: http://MegaEveningEvent.com

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